In this article, we will discuss why more homeowners are leaving Illinois than any other state in the nation. Illinois is tied neck to neck with California for residents and businesses leaving their state. Illinois is now the sixth most populous state. It used to rank as the fourth most populous state in the country, but its ranking goes lowered due to more homeowners fleeing Illinois. The main reason for More Homeowners Fleeing Illinois is Illinois’ taxing system.
Despite thousands of Illinoisans fleeing Illinois due to skyrocketing property taxes and high cost of living, home values are still creeping up. There is a need for more homes versus demand for homes.
In this article, we will cover and discuss why More Homeowners Fleeing Illinois than any other state in the U.S. Recent data and polls by departing Illinois residents suggested as Illinois’ high taxes, including high property taxes, were the main reason for exiting the state.
Countless Of Homeowners Leaving The Land Of Lincoln
More than 90,000 Illinois homeowners left the Land Of Lincoln to other lower-taxed states. Popular low taxed states welcoming Illinois homeowners are the following:
- North Carolina
Illinois residents even relocated to Eastern states like Maryland, Virginia, Maine due to those states having lower taxes than Illinois.
Is The Exodus Temporary Or Will Illinois Lose More Taxpayers
Illinois is one of the best places to live in. Chicago, Illinois, and its surrounding suburbs have spectacular scenery and beautiful architecture. The East Side of Chicago borders Lake Michigan. Chicago is the home of the Sears Tower, Standard Oil Building, The John Hancock Center, Water Tower Place, and countless of other world-renowned buildings.
Chicago has the most beautiful downtown than any other city in the World. With three large skyrscrapers bordering Lake Michigan, Chicago is a great tourist destination.
There is no doubt thousands of taxpayers will not leave Illinois if the state was economically stable and would not raise taxes. Unfortunately, what JB Pritzker said in his campaign and what he is doing today as Governor of Illinois is totally different.
Illinois Has The Second Highest Property Tax Rate In The Nation
JB Pritzker turned out to be a major disappointment to Illinois taxpayers. It seems his solution to solving the state’s financial crisis is just to raise taxes. He is raising taxes on anything and everything he can think of. He recently doubled taxes on fuel which is hurting businesses that are near the state border. It just seems that Pritzker is incompetent and has no experience in running government.
Despite High Taxes, Illinois Is Facing Major Deficits
It is not how much you take in but how much you spend. He agreed and voted in giving lawmakers a raise. Many taxpayers are afraid of staying in Illinois and are referring Pritzker as a loose cannon.. Chicago is in a major financial mess. Chicago has one of the highest tax rates in the nation.
Financial State Of The City Of Chicago
With being one of the highest-taxed cities in the country, the city is still broke and could be facing bankruptcy. Chicago is the only major city in the country that has consistently lost taxpayers year after year for the past 5 years.
Michael Gracz, the National Sales Manager at Gustan Cho Associates and a Housing Market Expert said the following:
The so-called “U-Haul index” — a measure of the difference in rates charged for outgoing rental trucks versus incoming trucks — rates Illinois as number one for outbound moving vans. They are no doubt getting out while the getting is good. Many of the state’s 656 public pension plans are so far underwater that the state passed a law allowing something called an “intercept,” which allows pension boards to raid a delinquent municipality’s state income tax funds. The municipalities of Harvey and North Chicago have already suffered the indignity, and the pain, of having funds siphoned off to make those delinquent pension-plan contributions.
Comparing Illinois To Other States
Illinois is not the only state that is in a state of bankruptcy. California has the same issues. California has been losing tens of thousands of homeowners due to high taxes and surging home prices. The average California home costs $589,000. This is twice the national median average of $295,650. Fuel prices are 35% higher than the national average.
California has an additional gas tax like Illinois that is 15% higher than the national average. New York is on the verge of financial collapse. Countless of New Yorkers are fleeing to lower-taxed states. Yet, politicians in New York is raising taxes and creating new taxes on anything and everything they can think of.
What Experts Say Why More Homeowners Fleeing Illinois
Mike Gracz, the National Sales Manager at Gustan Cho Associates said the following:
Eventually, city and state taxes, fees, and regulations become so burdensome that people and corporations jump ship. More people are currently fleeing New York than any other metropolitan area in the nation. More than 1 million people have moved out of the New York City metro area since 2010 in search of greener pastures, which amounts to a negative net migration rate of 4.4 percent….What’s happening in the Big Apple is a microcosm of what’s happening in the nation’s blue states, cities and towns. New York, Los Angeles, Chicago — the places where power and capital have traditionally congregated — have become so over-regulated, so overpriced and mismanaged, and so morally bankrupt and soft on crime that people are leaving in droves.
Main Reason Why More Homeowners Fleeing Illinois Due To High-Cost Of Living and Skyrocketing Taxes
Mike Gracz further states the following:
The exodus is eroding the tax base of Illinois and other states while the generous welfare schemes in these states are inviting the poor to move there. This is a recipe for increasing the incentive by those who can move.
Michael Gracz used to be a lifelong resident of Illinois. He sold his home in the Northwest Suburbs of Chicago and relocated to Colorado. The main reason Mike relocated to Colorado was because of the high state taxes of Illinois. This held especially true with his property taxes. Mike Gracz sold his house and is currently shopping for a home in the Denver area to purchase.
Why Are Certain States Booming While Others Are Going Broke?
One of our borrowers at Gustan Cho Associates moved to Franklin, Tennessee. This couple said that by moving to Tennessee, it saved them 25% of their income. These savings could have gone to property taxes and other junk taxes in DuPage County, Illinois.
Why more homeowners fleeing Illinois, Florida is raking billions in taxes due to new residents moving to their state. It seems like the Republican-run states are thriving while states run by Democrats are going broke. This is a developing story. Gustan Cho Associates Mortgage News will keep you posted as more news develops in the coming days, weeks, months. Stay tuned.
This blog on more homeowners fleeing Illinois was updated on January 7th, 2922.
January 7, 2023 - 6 min read