Relocation Trend: Less Expensive States

The geographic optionality stemming from corporate work-from-home policies has hastened an economic and lifestyle trend that has seen many individuals and families moving from states with high taxes and high costs of living to less expensive states.  Many professionals have gained the flexibility to work from anywhere with an internet connection and a relatively quiet workspace, while the relative advantages of living in large metropolitan areas like New York and Los Angeles have largely been muted by government-mandated, pandemic-driven restrictions on business and social activities. 

Cities like Austin, Texas and Charleston, South Carolina have experienced outsize population growth recently, while larger cities in expensive states, such as California, New York, and Massachusetts, have seen significant outflows. 

This population movement could have enormous long-term financial ramifications for industries including construction, auto manufacturing, and tech, and the trend warrants close attention by investors as the economy eventually adjusts to COVID-19 vaccinations, policy changes from a new administration in the White House, and post-pandemic business practices.

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- Anthony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management