Business Insider recently shared an interesting glimpse into the economic exhaustion of New York City that is driving many residents—even multimillionaires and bankers—away from the exorbitant cost of living and crushing city taxes of the greater metro area in New York.
John Aidan Byrne of the New York Post echoed the sentiment, reporting more multimillionaires, particularly those with Wall Street jobs, are expected to leave this year.
“The massive bonus pool typical for city workers is under stress as more bankers and traders bolt for other states to escape New York’s punishing taxes and steep living costs,” Byrne wrote, citing experts who analyzed the latest compensation data from the state comptroller.
The Insider notes a surplus of “ultra-luxury penthouses” not selling and that some real estate companies are even splitting these penthouses into two smaller, cheaper units just to get them off the market.
New York is not the only overpriced metro area experiencing a great diaspora. Cities like San Francisco are also driving residents away with low supply and high demand for homes causing housing prices to skyrocket. 46% of San Francisco residents told a survey they plan to move away soon, with most expressing an intent to head to Seattle and Portland.
“Seattle remains a relative bargain compared to other tier-one cities,” said Dean Jones, President and CEO of Realogics Sotheby’s International Realty. “We’re fortunate that we not only have lower median home prices but a greater trajectory for appreciation given the rising incomes and population growth. That runway for rising prices is what’s also attracting additional investment.”
Seattle’s unique position—with both its projected growth and current attainable home ownership—makes it an attractive next stop for professionals and those preferring in-city lifestyles.
See the original article in Business Insider here: https://markets.businessinsider.com/news/stocks/wealthy-people-abandoning-new-york-city-san-francisco-cost-of-living-2019-4-1028079927