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Americans leave Louisiana and California due to jobs and cost concerns

Insurance Rate Reporter / 1 day ago

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Peter Beyer SVP, Finance & Operations | realtors.com

In 2024, five states experienced a significant outflow of residents, as revealed by Atlas Van Lines. The states with the highest outbound moves were Louisiana, California, Illinois, South Dakota, and New York.

Louisiana topped the list primarily due to a lack of job opportunities. According to the Shreveport Times, this was the main reason for residents leaving. In November 2024, Louisiana's unemployment rate rose to 4.3%, slightly above the national average of 4.2%. A study by the Life Extension Foundation also ranked Louisiana as the fourth-worst state in terms of life expectancy.

The cost of living was another factor influencing relocations from California and New York. California ranked second highest in living costs in the U.S., while New York was fifth. Jameson Tyler Drew, president of Anubis Properties, noted that property taxes in Los Angeles could reach five figures for new homebuyers. "Compared to other metro areas, L.A. is one of the most expensive places to live and raise a family," he said.

High taxes were cited as a key reason for people leaving Illinois. Illinois Policy reported that high taxes are consistently the top reason for considering relocation. MoneyGeek found that state and local taxes account for about 13% of a median family's income in Illinois. Jeff Lichtenstein, CEO of Echo Fine Properties, commented on this issue: "Illinois is a mess—the problem is overspending that put the state in such a hole that taxing is the only way out."

Weather conditions also played a role in relocation decisions. South Dakota's severe winters were among the harshest in the United States.

Despite these challenges, these states offer more housing opportunities for potential homebuyers:

1. **Louisiana**

- Largest metro: New Orleans-Metairie

- Median listing price: $325,000

- Monthly house payment: $1,714

2. **California**

- Largest metro: Los Angeles-Long Beach-Anaheim

- Median listing price: $1,094,000

- Monthly house payment: $5,770

3. **Illinois**

- Largest metro: Chicago-Naperville-Elgin

- Median listing price: $347,450

- Monthly house payment: $1,833

4. **South Dakota**

- Largest metro: Sioux Falls

- Median listing price: $369,975

- Monthly house payment: $1,951

5. **New York**

- Largest metro: New York-Newark-Jersey City (NY-NJ)

- Median listing price: $749,000

- Monthly house payment: $3,950

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