Across the US, high-income workers have migrated to Miami to take advantage of the city’s generous tax policies and modest cost of living. But depending on what part of the country you’re from, moving to the Magic City might not make financial sense.
That’s the key finding of a new study by financial technology firm SmartAsset. According to the study, New York City workers on $650,000 a year could save nearly $200,000 a year by moving to Miami, where the cost of living is about 115% lower than in the Big Apple.
Equally wealthy San Franciscans would see a 60% drop in the cost of living in Miami and save just over $150,000 a year. In contrast, Chicagoans at that salary level would find the cost of living in Miami to be only 6% lower, and they would save just $10,500 by moving south.
SmartAsset used federal, state, and local taxes and cost-of-living data to calculate how much single New York, San Francisco, and Chicago taxpayers earning between $150,000 and $650,000 a year could save by relocating to Miami . The researchers also factored in housing costs using data from each city’s downtown area.
The study shows that savings increased with workers’ incomes, with higher earners getting the most bang for their buck. Still, folks making $150,000 could keep a bigger chunk of their salary if they settle in Miami, with savings ranging from about $1,900 to $48,000 depending on which city they’re relocating from.
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The study shows that savings across all income brackets were consistently higher among New York residents than residents of other cities. That’s because the cost of living in New York is the highest of any city analyzed by SmartAsset, 137% above the national average. The cost of living in Miami is 23% higher than the national average.
Not just snowbirds
Given the high cost of living in New York, it should come as no surprise that many of the city’s residents are looking for greener pastures.
According to search activity data from real estate website Realtor.com, many prospective homebuyers and renters living in New York are looking for Florida real estate. Seven of the top 10 counties searched by New York-based users on the site were in Florida, and all were outside of New York state.
According to Realtor.com, New Yorkers are also responsible for 23% of Miami-Dade County housing searches.
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