Interstate migration in the United States vary for each state, but most people move to a different place where homes are bigger and housing expenses are more affordable.
You need to consider the costs before moving to a different state. Professional movers for long-distance relocation usually charge per mile, which could be cheaper than paying by the hour when you take traffic into account. Some people have thought about moving to Canada for certain reasons, but it requires the same planning before making a decision.
Reasons for Relocation
The 2017 American Housing Survey showed that 35% of Americans who moved to a different place wanted bigger houses, which weren’t available in their previous address. Cheaper housing expenses drove 18% of people to leave their current home, especially in cities with a high cost of living like Los Angeles and New York City.
In fact, 47 million people relocated per year between 2012 and 2016. As home prices continue to increase in large cities across the United States, this number could have easily increased since then. Not all people, however, pack their bags and move out of their state. Some households simply move to a different city.
Short-Distance Moving
As moving for long distances entail a lot of costs, many just look for a city with a low cost of living in their home state. As an example, residents in Dallas may decide to live in Harlingen, Texas. The city’s cost of living is around 24% lower than the national average. Home prices are also cheaper at $85,700 on average. However, you need to have a job before moving because of a 6.3% jobless rate in the city.
Lower home prices also equate to cheaper housing expenses such as taxes, but you must be willing to give up a bigger salary when you move into suburban areas in any other state. It helps that Texas doesn’t impose taxes on personal income, along with only six other states including Florida. Taxes are another reason you should think carefully if you plan on leaving the United States.
Taxes in Canada
More people expressed their interest in moving to Canada based on a recent survey, but this isn’t advisable especially if you want to avoid paying higher taxes. For instance, the marginal tax rate in Quebec reaches almost 54%. If you currently live in a state with no personal income tax, then abruptly moving to Canada could come as a shock.
Senior citizens who wish to retire must also be careful about how they handle their finances. A good way to protect your money requires a complete withdrawal of your funds, or you could convert your retirement funds into a similar account in Canada.
Relocation isn’t as simple as moving all your stuff and driving away, especially if you intend to move into a different country. Don’t forget that moving to a new address not only involves transferring your personal belongings, but also dealing with financial matters like closing bank accounts once you decide to move into a new home.