This BLOG On Illinois Homeowners Fleeing State To Other States With Lower Taxes Was PUBLISHED On February 22nd, 2019
Illinois is a great state. I grew up in the Chicagoland area and consider Illinois home although I now live in another state. Chicago is ethnically diverse.
- Chicago and its surrounding suburbs have the finest restaurants of all nationalities
- Downtown Chicago is one of the most beautiful places in the country, if not the most beautiful
- Home to the Sears Tower, John Hancock Building, and Standard Oil Building
- Millions of tourists visit Chicago and its surrounding suburbs for tourism as well as for businesses
- Chicago is home to the best hotels
- Bordering Lake Michigan, the city has countless of waterfront housing where Chicagoans enjoy boating and the finest beaches
- Illinois Homeowners Fleeing State to other states with lower taxes
- The state has spiraled out of control economically
- This is due to incompetent politicians who do not understand fiscal financial responsibility
- The state has one of top deficits and politicians want to tax everything they can think of
- Property taxes in Chicago and surrounding suburbs are going up year after year
- Many homeowners are now calling enough is enough and Illinois Homeowners
- Fleeing State with lower taxes
- It is not property taxes, but sales and income taxes that are out of control in Illinois
- Many still consider Illinois home and are hoping for change
Many Illinois Homeowners Fleeing State of Illinois to neighboring Indiana, Michigan, Ohio, Kentucky, Tennessee. Other popular states Illinois Homeowners Fleeing State is to other states with low taxes like Florida, Texas, Georgia, Mississippi, Colorado, Pennsylvania, Alabama, and North Carolina. A large number of Illinois Homeowners Fleeing State of Illinois is to Kentucky.
Illinois Homeowners Fleeing State To Florida
Florida used to lead Illinois Homeowners Fleeing State. Florida is still a great place to live. However, home prices have gone up exponentially. Home in Florida has appreciated double-digit since 2012.
One of our borrowers at Gustan Cho Associates who left Illinois to Florida issued the following reasons for fleeing Illinois:
“I’m getting out. It’s not just the property taxes on my home; it’s all of them. I chose to leave Ilinois because there is no personal income tax, will be about a quarter of what I was paying in Illinois. Florida has great competition like Governor De Santis, Senator Rick Scott, Pam Bondi, and others who know how to run the state like a business. In Illinois, you have total incompetents who talk out of their A$$ES like Chicago Mayor Rahm Emmanuel, Senator Dick Durbin, and the newly elected Governor JB Prtizker (we will see how he will be performing in the coming months). “
Will Illinois Go Bankrupt Or Resolve Its Financial Crisis
Gustan Cho Associate is a national direct lender with no overlays licensed in multiple states. We have countless of Illinois homeowners leaving state monthly. We see this monthly and the exodus have been getting worse recently. In 2016, Illinois Homeowners Fleeing State was over 40,000 residents. Numbers for 2017 are not out yet but it is supposed to surpass the 2016 Illinois Homeowners Fleeing State by more than 25%. This will put Illinois state’s population at its lowest level in nearly a decade. Illinois Homeowners Fleeing State ranks as the highest than any other state with the state losing more residents than any other state in the past 3 years. The data of the number of residents lost in 2017 in the state will not be ready until this December 2018.
Why Illinois Is So Broke And Have Financial Mess Than Any Other State
Many who left Illinois state the reason of them leaving. Two biggest reasons by most is the state taxes and the state’s financial crisis and shortfall year after year. According to Massimo Ressa, CEO of Gustan Cho Associates at Loan Cabin Inc. he stated the following statement:
After going more than two years without a budget, Illinois lawmakers passed a spending plan over the summer, one that involved a 32 percent income tax hike for residents. The state is still digging itself out of the financial disarray that accumulated during the budget impasse. A Forbes listing of the best and worst states for taxes in 2016, before the tax hike, ranked Illinois 46th.
Why Residents Of Any State Consider Moving To Other States
The main reason why people consider moving to another state is mainly due to employment.
- People normally do not move because of the state’s financial health and/or due to higher state taxes
- Most people moving are in the ’30s and move to enhance their employment opportunities
- When data reflects that there are more folks moving out of a state than into a state, it normally suggests that employment and/or carrier/opportunities are elsewhere
- However, another main reason why Illinois is losing mass residents to other states is because of high tax rates
- Higher taxes affect the housing market. Illinois is a mess and politicians still seem like they have not gotten their acts together
- Higher taxes drive businesses out of the state
- Politicians keep on increasing property taxes, state income taxes, and sales taxes
The weak economy in Chicago and suburbs, government fiscal mess, and increasing taxes are driving residents to neighboring states like Indiana, Michigan, Ohio, Kentucky, Missouri, Iowa, Tennessee.
Affordable Housing In Illinois Becoming Hard To Find
Many Illinois home buyers are being priced out of the market.
- They are not being priced out of the market because of housing prices but because of property taxes
- For example, many homes in Round Lake Beach, Illinois are priced in the $100,000 to $150,000 range
- However, Round Lake Illinois property owners are paying three times the national average in property taxes
- Average property taxes in Round Lake Beach Illinois is $8,000 compared to similar homes in Indiana where it is $2,340
- This often drives homeowners and home buyers to relocate to other states with lower property taxes
Many cities and towns in Illinois increase property taxes often. Many homeowners with fixed income are being forced out of their homes.
Home Builders Steering Away From Illinois
Home Builders are thriving. Most homes sell out once the developer has lots permitted. However, home construction is being affected in Chicago and surrounding suburbs due to the financial mess in Illinois. Prior to the 2008 real estate collapse, 40,000 plus new homes were being built in Illinois. Today, no more than 12,500 homes are built. This number will decrase in years to come. This slowdown in home construction affects revenues for the state thus multiplying the negatively impacting the state’s revenues and hurting city and country governments.
Indiana Reaping Reward From Illinois Homeowners Fleeing State
Many Illinois Homeowners Fleeing State to its neighbor Indiana.
- Lake County, Indiana has experienced explosive housing growth due to Illinois Homeowners Fleeing State
- Number one reason why Illinois Homeowners Fleeing State to Indiana is due to property taxes
- Northwest Indiana has seen an increase of 18% in housing construction
This increase is mainly due to Illinois Homeowners Fleeing State of Illinois.
Housing Boom Throughout The United States
With an exception of an about a dozen states, Illinois included, the housing boom is continuing.
- Both FHFA and HUD increased loan limits on Conventional and FHA Loans for the past three years due to rising home prices
- Many metropolitan areas are seeing all-time high housing prices
- This is not the case in Chicago and surrounding suburbs where home prices are either flat or declining with property taxes increasing
- Chicago and its outlining areas are one of the few areas in the United States where homeowners have underwater mortgages
- It’s not just property taxes that are increasing in Illinois
he state legislature recently increased state individual income taxes from 3.75% to 4.95%.
Illinois Homeowners Fleeing State Of Illinois To Florida
A large percentage of Illinois homeowners have a second home in Florida. Many are concerned about Illinois so they are considering moving to Florida and becoming legal Florida residents. One of the factors that Illinois Homeowners Fleeing State of Illinois to warm climate states like Florida is to adapt to its lifestyle. Will they enjoy hot warm weather all year around? Many people like myself enjoy the four seasons. To me and many others Thanksgiving and Christmas is cold weather and snow. Homes in Florida do not have basements. Snakes and alligators are common in Florida. It is one thing to vacation to hot climate states but would you enjoy living there all year long?