A CNBC report said that around 600,000 Americans left New York and California to move into lower tax states. In addition, they might be leaving their home states in favor of less-restrictive areas with regard to COVID-19.
600,000 Left New York and California During The Pandemic
CNBC wealth editor Robert Frank shared the information during the network’s “Squawk Box” program last Monday. “More than 600,000 people [left] New York and California for lower-taxed states during the pandemic,” he said.
In addition, Frank noted the correlation between population and tax rates. “That’s according to Census data. California lost 300,000 residents between April of 2020 and July of 2021.
New York lost a net 365,000 people, about two percent of its total population,” he added. Both states are known Democrat strongholds. A third state, Illinois, also lost 114,000 residents.
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Where Did New York and California Residents Go?
The CNBC report did not mention where the New York and California residents went when they moved away. However, the report did say that some states gained hundreds of thousands of new residents during the same pandemic period.
“The biggest winners, not surprisingly, were Texas and Florida, which have of course no income taxes,” Frank said. In fact, Texas gained 382,000 new residents, while Florida added 243,000. Arizona also gained some new citizens, reporting an increase of 124,000 residents.
But why did people move in the first place? Frank said that there are various reasons to do so. He mentioned lower housing prices, lower cost of living especially with remote work, or the presence of family. However, Frank noted a “continued shift from high tax to low tax states.”
New York and California, Plus Illinois, Are All Democrat States
The three states that reported the most residents who packed up and left are all Democrat-governed states: New York, California, and Illinois. Meanwhile, the states that gained the most residents have a Republican governor. These are Texas, Florida, and Arizona.
Meanwhile, moving truck company U-Haul reported that California remains the state with the most residents packing up and leaving. The company said even more Californians left the state in 2020.
However, a major reason can be attributed to U-Haul’s inability to provide enough moving equipment in 2021. In contrast, U-Haul said that Texas ranked number one as the top moving destination.
California Is Losing Residents
While California has 40 million residents, the number is continuously declining. According to data from the Census Bureau, about 653,000 Californians left the state in 2019.
Meanwhile, 480,000 Americans moved into California from another state. During the last year, 82,235 Californians moved to Texas. During the same period, nearly 60,000 went to Arizona. In addition, 47,322 moved to Nevada, 46,791 went to Washington, and 37,927 went to Oregon.
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According to the New York Times, the high cost of living is a major motivation for many Californians to pack up and leave.
In Texas, the median home price is $329,000, less than half of what it is in the Golden State, according to Redfin, a real estate brokerage,” the Times said.
Watch the Fox Business news video reporting that Texas, Florida see the highest population growth in the US:
What do you think is the major reason Californians left their home state? Is it the cost of living, the liberal environment, or the oppressive COVID policies?
Let us know what you think. Share your comments below.