New York Sees Exodus of Middle-Class Americans

New York is witnessing a significant exodus of its middle-class residents as rising living costs and housing affordability drive more people out of the state, according to a new study.

An analysis of U.S. census data by Hire A Helper highlighted the shifting dynamics of American migration patterns, revealing that middle-income earners are increasingly choosing to leave New York in search of more affordable living conditions.

According to the study, Americans in the bottom 20 percent of earners are 32 percent more likely to move than their top-earning counterparts. However, when it comes to interstate moves, the top 20 percent of earners—those making over $150,000 annually—are the most likely to relocate to a different state.

Middle-income Americans have a mobility rate similar to that of lower earners, with approximately 9 percent of them moving in 2023. Yet, like higher earners, nearly one in five of those who moved did so across state lines.

This trend is particularly evident in New York, where high housing costs and living expenses have pushed many middle-class residents to seek better opportunities elsewhere.

“One of the biggest reasons middle-class earners gave for moving was to find new or better housing. The next reason they gave was to establish a household,” Miranda Marquit, Hire A Helper’s spokesperson and consumer advocate told Newsweek.

She noted that New York, especially New York City, is notorious for its expensive housing, which has made it difficult for middle-income families to sustain themselves.

The economic impact of this exodus is substantial. New York, along with California, has already lost $90 billion in income tax revenues due to out-migration, a trend that was exacerbated during the COVID-19 pandemic.

Marquit explained that the loss of middle-class earners could have long-term consequences for the state. “An exodus of earners can result in lower state revenues,” she said. “This can potentially impact services provided by the state to support low-earners.”

The study also highlights that while lower-income Americans are more likely to move due to being priced out of the housing market, they often lack the financial resources to relocate. This has led to a concentration of poverty in certain areas, further exacerbating issues like crime, health disparities, and poor educational outcomes.

Meanwhile, middle-class Americans, who have slightly more financial flexibility, are more likely to make the leap to other states where housing is more affordable and job opportunities are more abundant.

States like Delaware and South Carolina have become increasingly attractive to the middle class, offering a combination of affordability and lifestyle benefits. “Delaware and South Carolina are still relatively affordable, and there are likely lifestyle factors involved,” Marquit said. She noted that Delaware’s proximity to major cities like Philadelphia and New York, combined with its lower cost of living, makes it a desirable destination.

South Carolina, with its access to the ocean, mountains, and mild climate, also appeals to those seeking a better quality of life.

In contrast, New York continues to lose its middle-class population. According to the study, 55 per cent of middle-income earners who moved in 2023 left New York, one of the highest rates in the country. This outflow not only reduces the state’s tax base but also threatens the viability of its communities, which rely on a stable middle class to sustain local economies.

Marquit pointed out that middle-class migration patterns differ from those of both low- and high-income earners. “Middle-class migration patterns show an interesting hybrid between low-income and high-income earners,” she explained.

“Middle-income earners move at the same rate as low-income earners, while high-income earners are more likely to stay put. When high-income earners move, they are more likely than lower-income earners to move across state lines.”

To combat this trend, states like New York may need to implement policies that make it more attractive for middle-income families to stay.

“Investing in community resources like education, affordable housing, childcare, and tax incentives for middle-earners could help them feel more supported where they live so that they can afford to stay,” Marquit suggested.

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