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Relocating Real Estate: US Trends & States to Watch in 2021

Written By: Jacquelyn Annete García Vadnais

The global economy has seen a great deal of changes in 2021 that have also greatly impacted the real estate market. One major trend that has caused the real estate market to shift within the United States is the trend of many companies offering employees to work from home along with major taxation policy shifts that have inspired many residents to relocate to other cities or states. What has happened as a result is that many states have had a substantial shift in their real estate market with sales in some cases being higher than ever before and others have seen a mass trend of residents leaving. In order to learn more about which states to watch for 2021 in terms of shifting real estate markets, review the information below:

California

California has seen a major shift in 2020. One aspect of California is that there are major shifts in taxation that are causing many residents to leave more popular cities such as San Francisco, San Diego, and Los Angeles with the objective of finding areas that have less expensive houses. In this case, it has led to some residents to decide to leave California all together and others to look to more affordable cities such as Sacramento in order to find a home that will not have as high taxation levels while still offering a high quality of life and professional opportunities.

North Carolina

North Carolina for a long time has been an appealing market for families to enjoy larger homes than more expensive parts of the country such as California or New York. What is different going into 2021 is not only the number of firms that have relocated their corporate presences there but also a potential for an employee for a firm in New York or Illinois deciding to relocate to a more suburban part of North Carolina and work remotely. This has greatly shifted the market in North Carolina in terms of pricing and demand.

Texas

Texas is absolutely a market to watch in 2021. Texas enjoys lower taxes and more affordable houses than California. There has been a great shift of relocation to Texas in 2020, particularly with major tech CEOs looking to leave Silicon Valley and California’s increased taxes. Texas will likely see a major shift of professional firms moving there for the more affordable real estate and taxation as well. What this will likely cause is a booming housing market that would be worthwhile to invest in.

Idaho

Idaho has a major appeal in 2021 due to its scenic beauty and slower pace of life that it offers. Many professional firms have relocated to Boise, which has caused the housing market to boom before the Covid-19 pandemic. Now with remote working, there is a shift in individuals buying larger houses to enjoy the tranquility in Idaho while simultaneously being able to work remotely. Idaho offers an affordable and safe place to live that is attracting many young professionals and young families that were priced out of other more expensive cities and suburbs in the United States.

Florida

Florida has always been appealing to New Yorkers that not only want warmer weather but also that want to split their residency to avoid paying state and city taxes. In 2020, many individuals have relocated from New York to Florida alone, but there has also been a trend of individuals investing in second homes there in order to have another option in 2021 or leaving big cities such as New York all together. In the Miami market, condo sales are absolutely something to watch in 2021 along with suburban homes located on the coast throughout the state in 2021.

Utah

Utah is a market that has also seen a shift in 2021. Salt Lake City has become appealing along with its immediate suburbs since it is a city that is more spaced out than other American cities. Utah offers families many opportunities for hiking, camping, and other outdoor activities that are ideal when individuals are trying to avoid staying inside. Utah has seen a shift of individuals purchasing both primary and secondary homes in order to expand their options. 2021 will likely continue this trend, which will further grow Utah’s real estate market.

New York

New York has been a very volatile market in 2020; however, there are pockets of New York that are important to watch for 2021. Many New Yorkers are looking for ways to leave Manhattan due to increased crime and uncertainty in the market. However, for those that don’t want to move too far away from their jobs, islands such as Long Island and Westchester have seen a great deal of expansion for New Yorkers looking to try the suburbs and save on expensive city rents and New York City taxes when New York City has seen such a major shift. This is why Long Island and Westchester along with Upstate New York are absolutely markets to watch closely in 2021 for investment.

Final Remarks

2021 is a year that is going to see a major shift in real estate markets in the United States. Since there has been an overall trend of city dwellers to want to relocate to the suburbs along with major state taxation policy changes, state markets will see major changes. For investors that are looking to capitalize, it is wise to look at the upcoming trends and decide whether it is beneficial to purchase a home in one of these markets for prospective tenants or to purchase a personal residence while interest rates are so low. It will be fascinating to see how these state real estate markets develop in the United States as 2021 progresses and the American workplace shifts towards a more remote-oriented working model.
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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.

Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.

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