Illinois Homeowners Fleeing To Other Low Taxed States

This guide covers about the reasons why Illinois homeowners fleeing to other states with low taxes and affordable housing. Illinois continues to lose thousands of individual taxpayers and businesses into 2021. The trend is expected to continue at an alarming rate. With a major increase in remote workers in the labor force, high-taxed states like Illinois, New York, and California are expected to have a mass exodus of taxpayers as well as small businesses.

Unfortunately, Illinois has a governor, JB Pritzker, who thinks that increasing existing taxes and creating new taxes solves the financial crisis the state is in.

Granted, Illinois is one of the most beautiful states in the nation and a central hub to commerce, manufacturing, government, the arts, and education. However, people are not dumb. Taxpayers now have a say so in what city and state to live due to the mass remote job opportunities in the labor force. Governor JB Pritzker said the state is losing population due to young millennials leaving Illinois to study in other states. No doubt Pritzker is in a state of denial. New leadership is in order for Chicago and Illinois.

High-Taxes And Incompetent Leadership Main Reason For Mass Illinois Exodus

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 waterfront housing where Chicagoans enjoy boating and the finest beaches.

Incompetent Leadership And High Taxes Making Illinois Homeowners Fleeing

Illinois Homeowners Fleeing 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 the 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.

States Illinoisans Are Fleeing To

The coronavirus pandemic has changed the business models of most American companies. Most businesses have strongly pushed for remote job opportunities for their employees. One of the greatest benefits of being a remote worker is remote employees do not have to report to a brick-and-mortar location. Therefore, they can live anywhere they want. They are no longer tied to living in a city, county, state that is highly taxed and has a high cost of living. This is what is happening in Illinois. Many Illinois Homeowners Fleeing State of Illinois to neighboring Indiana, Michigan, Ohio, Kentucky, Tennessee. Other popular states Illinois Homeowners Fleeing State is 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 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.

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.

Why Illinois Homeowners Fleeing State And Moving To Other Low-Taxed 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.

Illinois Homeowners Fleeing State: Affordable Housing 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.

Illinois Homeowners Fleeing State: 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. The 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?

UPDATE on Illinois Homeowners Fleeing To Other Low Taxed States

Homeowners in Illinois are moving away to places with lower taxes and cheaper cost of living. This tendency includes high property costs, the expensive standard of living, and the need for a good business environment. Below is an elaborate look at the causes of Illinois residents’ migration as well as their preferred destinations:

Grounds For Shifting: High Property Taxes

Illinois has among America’s most costly land rates and high taxation rates. This makes it hard for owners who find themselves unable to handle such expenses to opt for states with lighter tax burdens.

Expensive Standard Of Living

The overall cost of living, especially in cities like Chicago in Illinois, is much greater than in many other parts of the University, making housing or utilities cheaper elsewhere. This makes it hence attractive for people looking to move out.

Economic Opportunities

States with booming job markets coupled with strong economies, such as Texas, Florida, Tennessee, etc., entice those from Illinois to seek better employment and economic growth.

Quality Of Life:

Some individuals relocate because they want a better quality of life, which can be brought about by favorable climatic conditions and less crowdedness, among other things associated with this change.

Favorite Relocation Spots

Texas

This state tops the list of places where most people from Illinois settle after leaving home since no income tax is charged here, and the cost of living is relatively low while job opportunities abound​​​.

Florida

Florida has warmer weather throughout the year than any other US state recorded, and no personal income tax is imposed on its residents. Furthermore, reasonably affordable property rates compared to those prevailing in Illinois make Florida a perfect choice for retirees and working-class citizens from this part of America​​​.

Tennessee

No taxes are levied on salaries earned through employment, so workers keep all their wages intact, unlike back home. Also, the total tax burden is quite light here, mainly due to the absence of State Income Tax. Among other cities within Tennessee, Nashville has been experiencing rapid economic growth and rich cultural heritage amenities such as museums and theaters that attract many visitors yearly​​​.

Indiana

Some people prefer living close by; hence, they choose Indiana over any other state near Illinois since they don’t have to travel long distances but also because it offers lower property taxes, which can work well for those who still want some connection with their former residents but need cheaper options too at times​​​.

Impacts On Illinois

The state of Illinois is steadily losing its population, leading to lower tax revenues for public services. The exodus could also negatively affect real estate values, making it difficult for the government to provide basic needs. Therefore, this situation must be addressed if new inhabitants are to be attracted while retaining current ones.

This breaking news article Illinois Homeowners Fleeing has been rewritten and updated on July 18th, 2024.