California residents used to complain about very high prices and rent (San Francisco is 2.5 times more expensive than the American average), cramped housing conditions, poor ecology, and other inconveniences – but it used to be thought that high chances of finding work and access to culture and entertainment outweighed these disadvantages. Last year, the pandemic has changed the value scale of residents of this state. The need to sit at home and work online is causing many to go in search of better and more comfortable living conditions.
The largest increase in population during the lockdown period in April-October 2020, according to LinkedIn, was in Austin, Texas, where, in addition to many businessmen, famous comedian Joe Rogan has moved. Such companies as Tesla, Oracle, Hewlett Packard Enterprise, and others have already moved their headquarters to Texas. The Texas capital is followed by Phoenix, Arizona, Nashville, Tennessee, and Tampa, Florida.
The cost of living plays a major role in choosing where to live. The most popular states for moving have one thing in common. There is no state income tax. There are nine states in the United States. In addition to Texas and Florida, they are Alaska, Wyoming, Washington, Nevada, and South Dakota, as well as New Hampshire and Tennessee, but they are taxed on income from investments.
Texas vs. California
A major factor in Texas' attractiveness is low taxes. According to the 2020 rankings, the state ranks 35th in the U.S. in total taxes to the public. By comparison, California ranks 14th. Texas does not charge individuals any income tax, which in California can reach 12.3%. If you compare Zillow data on average home values at the end of February 2021, California has the highest in the continental U.S. (only homes in Hawaii are more expensive) at $636,055 and Texas at $228,255. Looking at real estate in specific cities, the average home price in Austin, the capital of Texas is $482,766, while, for example, in San Jose, the main city of Silicon Valley, is $1,152,446, in Palo Alto – $3,145,953, and in Los Angeles – $826,566.
Austin has been called the live music capital of the world – thanks to its annual music festivals – and the fastest-growing major metropolitan area in the country. Conditions for corporations are also much more favorable than in other states. Not for nothing do many technology companies have their headquarters or offices in Austin, and recently businesses from Silicon Valley have been ‘moved’ here in droves – the University of Texas, located here, gives them extra manpower.
Florida vs. California
Florida just like Texas has no income tax, but it is hot and humid in the summer.
Florida and California are said to be the states with the most favorable climatic conditions. Florida, however, has a much nicer climate. The very name of this state means ‘blooming land’ – it was given to this land in 1513 by explorer Juan Ponce de Leon. Most of this state is in a subtropical climate. The hottest area in the southern part, where a tropical climate prevails. Despite the fact that summer is quite hot, residents say the heat does not bring particular discomfort. Ocean breezes help you get through the scorching summer.
When considering Florida, you should also remember that in contrast to the ‘democratic’ California, Florida is governed by a Republican. California has become one of the strictest states in the country in the fight against COVID-19, where Governor Gavin Newsom, a Democrat, has closed businesses and schools. His administration said it was implementing these measures based on the county's capacity. Meanwhile, Florida Governor Ron DeSantis, a Republican, has taken a very different approach. Although he took similar measures early in the pandemic, he ended up removing statewide economic restrictions and prohibiting law enforcement from fining people. That is the fight against COVID-19, and politics also affect the decisions of many major U.S. corporations, which are closing their headquarters in Democrat states and moving to Republicans because of taxes and for similar ‘technical’ reasons. Late last year it was announced that financial giant Goldman Sachs intended to move from New York to Florida. The financial old-timers of Wall Street are already moving to Florida, piece by piece, Credit Suisse, Morgan Stanley, Barclays, UBS, Citigroup, Alliance Bernstein, and many others.
It is also noted that real estate in Florida is much cheaper than in California. Again, if you compare the Zillow data on the average home value at the end of February 2021, in California the average is $636,055, while in Florida is more than twice as low – $273,094. Should you decide to move to Florida, we can help you get a mortgage on your home on the best terms – get in touch!