Wasin Pummarin

With more people fleeing high-cost cities, such as San Francisco, New York, Los Angeles, and Washington, “secondary” cities, such as Nashville, Sacramento, Atlanta, Phoenix, and Dallas, are seeing increases in their populations. The new wave of migration is attracted to these cities’ lower cost of living, lighter tax burden, job growth, and a better chance to buy a home within budget. In addition to those benefits, people are reporting improved quality of life overall.

“People in the coastal markets are just fed up with double-digit price increases, and they’re moving to a commuter town or to the middle of the country,” said Daryl Fairweather, chief economist for Redfin. “In our most recent ‘hottest markets’ report, Indianapolis tied for third place with Boston among the cities where homes go under contract fastest. People are moving there from Chicago, Los Angeles and the Bay Area because it’s affordable.”

The migration also is driven by the Republicans’ tax overhaul, which, among other provisions, capped the state and local tax deduction to $10,000. This particularly impacts states with high property taxes, such as California, Illinois, Pennsylvania, New Jersey, New York and Texas.

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