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2023 Study: Majority of Renters Priced Out of Homeownership in 78% of All US Metros

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Category: Buying & Selling a Home

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Key Findings

  • 63% of renters across the biggest U.S. metropolitan areas are priced out of home ownership (up from 61% last year)
  • The majority of renters can’t afford to own a home where they live in 205 out of 260 metros (78%)
  • At least 90% of renters are priced out of home ownership in 16 American metro areas, nine of which are in California
  • In two metropolitan areas, Prescott, AZ and San Luis Obispo-Paso Robles, CA, less than 1% of renters would be able to afford buying and owning a median-priced home
  • Kalamazoo-Portage, MI, Jackson, MI, and Johnstown, PA are the only three metros where more than 80% of renters could afford to own a home

In 2022, a study by Porch, a nationwide home-service company, found 61% of renters in the U.S. were priced out of homeownership, meaning they were not able to afford to buy and own a home in the same city where they rented. 

In 2023, applying that study’s same methodology to the most recent home-owner data resulted in an estimate of 63%. In other words, today, nearly two-thirds of renters can’t afford to buy a home in the metro where they live.

To gain a better understanding of this huge number, we examined housing affordability by comparing renter incomes to home prices using the most recently available data for 260 metropolitan areas in the United States.

Home Prices Have Dropped, Why Aren’t Homes More Affordable?

home ownership study porch hireahelperEven though home prices have been falling for the better part of last year and then continued their decline in 2023, housing affordability hasn’t improved. In fact, things have gotten worse for prospective homeowners over the last year. 

At the end of last year, the National Association of Realtors’ Housing Affordability Index reached its lowest point since 1965. It hasn’t been this hard for a family with an average income to qualify for a mortgage loan on an average-priced home in over six decades.

Why hasn’t a drop in home prices led to greater affordability? 

For starters, mortgage interest rates are at 6.65% according to Freddie Mac — the highest they’ve been since the Great Recession. This means potential mortgage repayments for buyers would be a lot higher than they would have been even just a few years ago.

 

“It hasn’t been this hard for a family with an average income to qualify for a mortgage loan on an average-priced home in over six decades.”

 

Secondly, there aren’t enough affordable starter homes. In part, that’s because there are simply not enough homes for sale in general after a pandemic buying frenzy. On top of that, there is simply put, a lack of cheap new homes. Roughly 63% of all U.S. homes were selling for over $400,000 by the end of 2022.

Finally, there’s the pervasive issue of inflation and the increasing cost of goods, services, and rent, leaving less money in Americans’ pockets. Despite dropping to 6.5% in recent months, it’s still way higher than the pre-pandemic 1-2% rate.

Now that we know more about why housing is less and less affordable, let’s get into where all this leaves American renters wanting to buy a home in 2023.

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Further Out of Reach: The Majority of Renters Can’t Afford To Own a Home in 205 out of 260 Metros

To estimate the percent of renters priced out, we assumed a scenario where a first-time buyer put down 6% of the home value, obtained a 30-year fixed-rate mortgage with a 6.65% interest rate (an average rate), and aimed to keep mortgage repayments to a maximum of 30% of the household income, as per the famous Housing and Urban Development guideline.

 

“…in two major U.S. metropolitan areas, the share of renters priced out of home ownership is a staggering 99%!”

 

With current income levels and home prices, this scenario is completely unattainable for the majority of renters in 205 out of 260 metropolitan areas in the United States. That’s in nearly eight out of the ten (78%) most populated areas in America where renters have no realistic chance at home ownership.

 

In the Porch study from 2022, there were 184 metros where home ownership was unaffordable for 50% or more renters living in them. 

This overall increase seems to suggest the affordability crisis isn’t just deepening in areas already struggling with affordable homes, but is actually expanding to more metropolitan areas across the country.

Mission Impossible: In Two Metros, Home Ownership Is Unachievable for 99% of Renters   

Last year’s study uncovered 13 major U.S. metro areas where at least 90% of renters wouldn’t have been able to afford home ownership based on their income. This year, there are 17 of them!

What’s different about this year’s findings, however, is that in two major U.S. metropolitan areas, the share of renters priced out of home ownership is a staggering 99%!

Those areas are San Luis Obispo-Paso Robles, CA and Prescott, AZ, where the home prices are prohibitively high to be affordable for the absolute majority of people who rent in these areas. Homes in San Luis Obispo and the area being unaffordable is nothing new, but affordability dropping in Arizona and Prescott, AZ specifically is something that’s started happening recently, according to local reports.

 

Of the 17 places in the U.S. where the income of 90% of renters would prevent them from being able to afford a home, nine are in California with cities like Los Angeles (94.3%), Salinas, CA (92.9%) and San Diego (92.6%) all with an appearance on the list.

Hawaii and Colorado each have two metros on this list, but, rather surprisingly, so does Charleston-North Charleston, SC, where some 91.6% of renters are priced out of home ownership. Turns out, housing has been too expensive in the area for a while, but the local government does seem to be stepping in and building more affordable homes, according to reports.

The Modest Midwest: Two Michigan Metros Among Three Most Affordable Places for Renters

Like last year, Johnstown, PA leads the pack in terms of affordability of local housing for those on typical renter incomes. Nearly 90% of people who rent in the area earn enough to cope with the costs of home ownership if they were to buy a home in the area.

The only two other metropolitan areas where owning a home without repayments crosses the affordability threshold of 30% of the household income are in Michigan. Those places are Jackson, MI, (11.9%) and Kalamazoo-Portage, MI (13.3%).

Looking at the 10 most affordable areas for renters looking to jump onto a housing ladder without it breaking the bank, five are either in Michigan or Illinois, while a total of three exist in Pennsylvania.

See All the Data for Yourself

To see how affordable homeownership is for renters in your city or metro, check the table below. 

Methodology, Data Sources, Calculations and Assumptions Made

Income levels of renter households and their % of all households in each metropolitan area were taken from the 2022 release of the Annual Social Economic Supplement to the Current Population Survey, as available via Integrated Public Use Microdata Series (IPUMS). Home prices were taken from Zillow.
% of renters “priced out” was calculated as the percentage of renters in each metropolitan area whose income wouldn’t be sufficient to keep potential mortgage repayments to 30% of gross monthly income (Source: United States Department of Housing and Urban Development). 
Mortgage repayments were estimated using the following assumptions:

Illustrations by Daniel Fishel

2021 Study: Where Americans Moved To Retire in 2021

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Category: Money Saving, Moving Stories

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Key Findings

  • Only 226,000 Americans moved to retire in 2021, the lowest number in seven years
  • Nearly half (47%) of Americans who moved after retiring this year went to a different state, compared to just 16% of all people moving
  • Early retirees (i.e., those younger than 65) were even more likely to leave their state (64%)
  • Tennessee (13%)—the state with one of the lowest tax burdens in the U.S.—is 2021’s top destination state for Americans retiring outside their home state
  • About 7% of Americans relocating for retirement in 2021 went to Pittsburgh, PA, more than any other city
  • Early retirees accounted for 40% of those moving for retirement in 2021
  • Retirees of color make up just 12% of those moving for retirement, as 88% of retirement movers are white Americans

 

According to recent estimates, COVID forced up to 3 million Americans to retire earlier than planned. This development pushed the percentage of people aged 55 and over who are retired to 50%, which is 2% higher than it was before the pandemic.

All things being equal, this means we’d expect to see a spike in the number of people who moved for retirement, but that didn’t happen. Quite to the contrary, the number of retirees who moved in 2021 dropped to 226,000—roughly 43% fewer than in the year previous. It’s also the lowest number of American retirees in the last five years!

More Retired, but Fewer Moved: The Decline in Retirement Moves in 2021

retirement moves

The trend for retirees this year is clear. But what are the causes? There could be a few plausible reasons for this discrepancy.

Why are fewer retirees moving?

1) COVID: It may seem like the pandemic is coming to an end, but it’s worth remembering that older Americans were the cohort hardest hit by the virus, with rates of infection, hospitalization, and death highest for folks over 65. It’s therefore conceivable that many would-be retirees had COVID, had to care for someone who had it or were otherwise affected by it. This may have undermined their willingness and ability to relocate. 

2) Housing market: After a turbulent 2020, to say that the housing market rebounded this year would be a huge understatement. Prices continue to climb at a record pace, especially in the desirable quiet, quaint, low-on-crime, high-on-sunshine neighborhoods retirees tend to seek out. Meaning, despite the fact that most retirees downsize, they may be getting priced out of places where they’d like to retire.

3) Lack of retirement savings: Many Americans lacked retirement savings due to having to spend them to sustain themselves or support their families even before the pandemic. This situation has arguably gotten worse in recent years, with one recent study finding that 14 million Americans stopped contributing to their pension plans.

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Most Stay Put, But Those that Go, Go Far: How American Retirees Moved in 2021

Despite dwindling numbers of retiring Americans deciding to relocate, those that do make that decision tend to travel a lot further than a typical person moving in 2021.

Americans moving for retirement were three times as likely to leave their state than of those moving for work, family, or any other reason (47% vs 16%).

This also constitutes a 10% increase on last year’s figures, where only 38% of people relocating for retirement decided to move out of their home state.

High Affordability, Low Taxes: Tennessee Top State Choice for Retirement Moves

Last year it was Virginia, this year it’s Tennessee; the Volunteer State was chosen by 13% of Americans moving out of state for retirement, the highest percentage of all U.S. states.

 

“Curiously enough, Tennessee was even more popular among early retirees. As many as one in five (20%) Americans under 65 who left their state for retirement moved to Tennessee.”

 

Tennessee is not only home to vibrant Nashville and Memphis, but is also the state with the lowest tax burden in the country, after Alaska. 

Meanwhile, Florida, the staple in any top destinations for retirement list, wasn’t that far off the top spot.11% of retirees who left their home state relocated to the Sunshine State in 2021. Pennsylvania (10%), North Carolina (10%), and South Carolina (9.4%) round off the top five.

Curiously enough, Tennessee was even more popular among early retirees. As many as one in five (20%) Americans under 65 who left their state for retirement moved to Tennessee.

Great Healthcare, Affordable Housing: Pittsburgh, PA Tops Retirement Destinations City List

pittsburgh

Technically speaking, areas outside cities and metropolitan areas were the most preferred destinations for retirees, as 26% of Americans who moved for retirement headed to smaller towns and cities far from urban areas.

The city attracting the highest percentage of retirees is in Pennsylvania, and it’s Pittsburgh. Once ranked as the best place to retire by Bankrate due to its low cost of living, excellent healthcare system, and a significant number of inhabitants being 65 or older, Pittsburgh was the top city destination of choice for 7% of all retirees in the U.S. in 2021

“An overwhelming majority of Americans moving for retirement in 2021 were white (88%); only 12% of those retiring and relocating were people of color.”

 

Three metropolitan areas from Tennessee also made the top 10. Kingsport-Bristol, TN-VA was the destination of choice for 3.9% of Americans relocating for retirement. A further 3.5% chose Nashville-Davidson-Murfreesboro , while 3% opted for Johnson City, TN.

Two Florida metros featured in the top 10 with Lakeland-Winter Haven, FL and Fort Myers-Cape Coral, FL representing the Sunshine State with roughly 3.5% of retirees moving to these metropolitan areas.

Worth noting that two of the most popular metropolitan areas to relocate for retirement were around Los Angeles and San Francisco in California.

Departing Delaware, Moving Out of Maryland: the States Retirees Were Most Likely to Leave

On the flip side, states which saw the highest percentage of retirees choosing to move out for retirement were Delaware and Maryland, where 22% of people moving to retire decided to leave. In Utah, which was top of our ranking last year had a share of 19% defectors.

Following them, a number of states, including Virginia and New Jersey, had 15% of their retirement moves headed outside the state.

Who Is Moving for Retirement in America: Retirement Moves by Demographic

In a year immediately following the pandemic, which cohorts of senior citizens were most and least likely to relocate for retirement?

Men (53%) are the majority among senior citizens relocating for retirement (47% are listed as women). Married couples accounted for 77% of retirement moves, while only 23% were single (which includes those divorced, widowed, and those never married).

An overwhelming majority of Americans moving for retirement in 2021 were white (88%); only 12% of those retiring and relocating were people of color.

Sources and Methodology
Unless otherwise stated, all the data behind the charts in this study was taken from the U.S. Census Bureau’s Current Population Survey and its Annual Social and Economic Supplements for 2021. 
To calculate the most moved-in and most moved-out states and cities, we took the percentage of all retirees in 2021 who moved or left a state or city. “Early retirees” was operationalized as any retiree younger than 65.  

2021 Data Study: The Rise (and Rapid Fall) of Remote Workers

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Key Findings

  • As of August 2021, 20.5 million Americans are working from home due to COVID, fewer than half (42%) that were working remotely at the start of the declaration of the pandemic in 2020 (48.7 million)
  • On average, 13.4% of Americans worked remotely in August 2021, an increase from 13.2% the month previous (July 2021)
  • July 2021 into August 2021 is the first increase of remote workers in America since December 2020
  • There are 15 occupations where over 50% of employees still work remotely, including finance, insurance, and tech jobs
  • Rates of remote work are highest in coastal states, including Massachusetts (24%), Maryland (22%), and New Jersey (21%)
  • Across metropolitan areas, employees in San Francisco, CA (36%), San Jose, CA (34%), and Madison, WI (29%) were most likely to work remotely in August 2021

 

Working from home was something many Americans were forced into. This was rightly burdensome for some—mostly those left to juggle childcare, work, and household activities from home. Yet for others, remote work became a positive opportunity.

Some of us got to do some gardening in the middle of the workday, or skip a crowded commute, or completely move out of an overpriced city to live somewhere quaint, green, and most importantly, affordable. 

But now, 18 months into the pandemic, how many Americans are still working remotely? In this data study we break down changes in remote work patterns in the U.S., look at how rates of teleworking vary by state, metropolitan area and occupation, then examine whether the rise of the delta variant may have had any impact on remote work.

Back to the Office? Remote Work in Steady Decline Since the Start of the Pandemic

When the Bureau of Labor Statistics began reporting on the number of people forced to telework due to COVID-19 in May of 2020, more than one in three (35%) adult Americans were working remotely.

remote workers 2021Heading into the end of 2021, remote work is in firm decline. According to the Bureau of Labor Statistics, as of August 2021, 13.4% of all employed Americans are most currently listed as working from home due to the pandemic. That’s almost three times fewer than the figure of remote workers from May 2020.

Worth noting, however, is that 13.4% is actually a higher share than the 13.2% that were working remotely in July 2021. This is the first time the number of remote workers has increased since the pandemic peaked in late 2020. Could this bump be related to the fact that the more aggressive delta variant of COVID has become a prevalent strain of the disease in the U.S. in July? Possibly, though we can’t say for a fact.

For many occupations and industries, the share of remote workers was never particularly high. Over 90% of healthcare professionals, construction laborers, truck drivers, agricultural workers haven’t at any point in the last 18 months worked remotely, and that makes sense, given the nature of their work.

For people in certain knowledge-based roles, the rates of remote work reached as high as 80% in May of last year. Yet even Americans in these occupations have been slowly returning to their usual workplaces.

 

“According to the Bureau of Labor Statistics, as of August 2021, 13.4% of all employed Americans are most currently listed as working from home due to the pandemic. That’s almost three times fewer than the figure of remote workers from May 2020.”

 

Most statistically notable of those returning to the workplace are teachers and educators, 80% of whom delivered lessons and lectures from home after the pandemic shut down schools in May 2020, yet are now almost entirely back to work.

Meanwhile, the share of Americans working remotely in community and social services has decreased by a factor of three. Similarly, only half as many scientists and researchers carried out their work from home in August 2021. 

The same goes for general business services (think sales, marketing, and human resources), where only 37% of employees work remotely due to COVID in August 2021; that’s a far cry from the 67% that did so in May 2020.

Even in tech, whose workforce seemed to have culturally embraced teleworking the most successfully, the percentage of employees continuing to work from home has reduced by 65%.

Finance, Insurance, and Tech: 15 Occupations Continue to Embrace Remote Work in 2021

While the above statistics describe the behaviors of broad groups of professions, let’s delve into individual occupations to see where remote work is still remarkably popular.

 

“Most statistically notable of those returning to the workplace are teachers and educators, 80% of whom delivered lessons and lectures from home after the pandemic shut down schools in May 2020, yet are now almost entirely back to work.”

 

Figures from the Current Population Survey suggest there were 15 occupations where over 50% of employees worked from home in August 2021. The three professions with the highest share of remote workers are all in economics and finance. Economists (92%), budget specialists (77%), and actuaries (71%) were more likely to work remotely than any other occupation.

Further down the list appear people in science-related jobs. Among them are astronomers and physicists, aerospace engineers, procurement clerks, and environmental engineers, all of which had between 60% to 70% representation of those who still worked remotely by August of 2021.

Work-from-home rates for operations research analysts, mathematical scientists, financial analysts, and credit analysts were between 55% and 60%. Rounding out these 15 occupations are eligibility interviewers, engineering managers, and public relations specialists.

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Fear of Fourth Wave? Some Occupations See Increase in Remote Work for the First Time This Year

For all the gradual return to what used to be known as “normal life”, specifically due to the increase of the vaccinated population, future mutations of COVID remain a concern. 

The rate of COVID cases persisting upward and hospitals nearing capacity in some states are likely the reasons why many employers still haven’t made up their minds about their stances on remote work going forward. 

The employees who still have a choice

When left to their own devices, a segment of workers choose where they work for themselves. And many, it would appear, are still choosing remote work. 

According to the Current Population Survey, there were 117 occupations where the share of remote workers went up in August 2021, as compared to the month prior. Notably, this is the month when the delta variant of COVID-19 became the dominant strain in the U.S.

For occupations like marketing managers, it’s also the first such increase since January 2021, back when the pandemic reached its peak of 250,000 new cases a day.

Work-from-home Hubs: Places in America Where Remote Work Still Thrives

At a rate of 56%, Washington, D.C. had the highest percentage of employees working remotely in August 2021 versus any state in America. Given the very specific government workforce that inhabits this part of the country, this is not so surprising.

All other top remote states in the top 10, except Illinois, are all on the coast. In Massachusetts, Maryland, New Jersey, and Virginia, that share reaches between 20% and 25% of all workers.

In three of the most populous states of America—California, New York, and Illinois—nearly one in five employees (~18%) worked from home in August 2021.

The cities with the highest remote workforce

Zooming in on cities—or metropolitan areas to be precise—we see that there are six metros where more than a quarter of workers carried on working remotely in the last month. Except for Madison, WI (29%) and Austin, TX (23%), all of these areas seem to echo the states with the highest remote workforce listed in the previous section.

Metro areas versus states

At the state level, the upswing in remote work between July and August looked marginal, whereas at the metro level—places where workforces tend to be more specialized—we see a different picture.

These metros aren’t all cities in the states we mentioned above. Instead, it’s places like Miami, FL and Houston, TX where 31% and 29% more people were working from home due to COVID-19 in August 2021 when compared to July 2021. Places like Omaha, NE (+15%) and St. Louis, MO (+13%) have also seen a double-digit increase in the share of remote workers month-to-month.

Sources and Methodology
The data on remote work due to COVID-19 by occupation group, occupation, state, and metropolitan area came from the Current Population Survey, as made available via IPUMS and the Bureau of Labor Statistics.
Illustrations by Rachel Tunstall

Moving During Delta: How COVID Affected American Moves in 2021 (so Far)

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Key Findings

  • 21% of people who moved from January through July 2021 said they moved due to COVID-19
  • During the first three months of 2021, every third move was due to COVID-19
  • 37% of COVID-related moves were people moving due to going remote
  • One-in-five (22%) moved after selling their home in a favorable real estate market
  • Around 18% moved because they didn’t feel safe where they lived
  • 17% moved because they couldn’t afford their housing and had to relocate
  • For the first time in years, more people moved into New York City (+51%) than left it

 

When we looked at how Americans moved during the pandemic at the end 2020, people reported about one-in-four moves were due to COVID. Moreover, most of those surveyed who said they moved due to COVID were driven by concerns for personal health and safety, financial hardship, and the need to take care of family.

How have things changed in the world since? Well, 2021 has been an ever-shifting landscape for moving so far.

delta covidA rapid rise in vaccinations at the start of the year was followed by a dramatic drop in the number of cases, as people started seeing friends and family socially again and public life began to reopen. And yet in July, despite the 52% majority of Americans being fully vaccinated, cases and hospitalizations were on the rise again, and today, there is even talk of a fourth wave.

Meanwhile, among factors directly related to public health, employers are deciding whether to go fully remote or to ask everyone to go back to the office (or go for something in-between). Elsewhere, the real estate market continues to exceed all expectations as prices climb higher than ever and homes are selling at a record pace.

Okay, so how have these recent events affected the way Americans move? To find out, we analyzed a sample of over 57,000 related moves booked through HireAHelper.com and our partners from January through July of 2021. We also surveyed these customers to understand why Americans said they moved throughout 2021.

Defying Delta: Americans Continued to Move at 2019 Rates Despite Ongoing Pandemic

During this time in 2020, overall moving came to an almost grinding halt. Likely due to a fear of infection, many opted to move by themselves, booking activity was low, and cancellations were through the roof. 

As we found out through the data later, many moves simply ended up being postponed for later in the year when it was safer. Towards the end of 2020, the overall number of yearly moves actually evened out as the busy summer “moving season” shifted towards the end of the year.

In 2021, we have a different story on our hands. As the number of newly discovered COVID cases dropped, the number of moves grew at a slow but steady pace. Then, as national vaccinations began to pick up the pace, so did the moves. By April-May 2021, many more Americans were moving than the year previous.

This trend continued into the summer months, despite the surge of the Delta variant, otherwise known as the latest variant of the coronavirus which became the dominant strain in the U.S. in early July.

Whether due to the proliferation of the vaccines, the unwillingness to postpone moving plans any longer, or just harsh economic realities, Americans seem to be moving much more actively in 2021 so far. 

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Remote Work, Real Estate, Return to Safety: Why Americans Said They Moved in 2021

As noted at the top of the article, 21% of moves made by our customers in 2021 were due to COVID-19, and more specifically the Delta variant.

That’s somewhat down from 25% at the end of last year, but still higher than the 15% of moves forced by the COVID pandemic we saw in early 2020.

Apart from being fewer in number, other things different about this year’s COVID-related moves are the reasons behind them.

In mid-2020, people who moved because of COVID claimed they did so out of financial hardship, to be closer to family, or due to feeling unsafe where they lived. By the end of 2020, the top reasons were similar: feeling unsafe, loss of job or income due to COVID, taking care of family.

 

“Financial hardship and concerns for safety gave way to remote work (37%) and taking advantage of the housing market by selling a home (22%) as the top COVID-related reasons to move in 2021.”

 

This year, however, things changed. Financial hardship and concerns for safety gave way to remote work (37%) and taking advantage of the housing market by selling a home (22%) as the top COVID-related reasons to move in 2021. 

This isn’t to say that concerns for health and safety are completely gone. Almost all COVID-related moves still happen for those very reasons, but the shift is clear. In 2020, pandemic-related moves were about sheltering in place to adapt to the new reality. In 2021, Americans seem to be making the most of the opportunities the pandemic presented despite all the hardship it brought about.

The Change of Reasons: Covid-related Reasons for Moving Throughout the Year

Sure, across seven months, many people moved to work remotely or after selling their homes in the booming real estate market. But that’s not always been the case in 2021. Let’s look at the most common COVID-related reasons for moving in 2021, over time.

Feeling unsafe due to COVID spread held at 10% of all pandemic-affected moves for five months, dipping to as low as 5% in June. But then the Delta variant happened. By July, as many as 15% of all pandemic-related moves were people concerned for their safety from the rapidly spreading infection.

Moving to work remotely is the reason that only became more common as the months went by, accounting for roughly 20% of all COVID-related moves in 2021. Selling a home peaked in May-June time, when this reason contributed to 15% of all COVID-related moves.

One reason that became less and less common as the year 2021 went on is moving due to losing jobs and income to COVID. Last year, as many as 35% of moves forced by the pandemic were down to financial hardship. In July 2021, financial hardship only accounted for 8% of stated reasons for a move.

Back to the Office? New York City Had More People Move in Than Out for the First Time in Years

We’ll leave the traditional review of where people are moving to and from for our annual report, but there was one curious finding that emerged from our analysis of moves in 2021 thus far.

According to the data, reports in the media, and figures from other companies in the moving industry, one trend always shines through; when you look at America’s biggest cities, such as New York, Chicago, Los Angeles, San Francisco, more people typically leave them than move in.

This has been true for years, but now we may have an exception on our hands. 51% more people moved to New York City than left New York City in the first seven months of 2021. 

In fairness, except for NYC, all the other major U.S. cities are showing the same trend they have in recent years—more people are leaving them than moving in. 

Whether this is a sign of an impending “big return to the office”, an indication that people started feeling safer, or a blip in the data remains to be seen. (We’ll round up all the moving trends in our annual report, likely to be published in January 2022.)

Return to Normal? Moving in 2021 Looks More Like It Did Before the Pandemic

Not only are people actively moving again, how and when they’re doing it resembles pre-pandemic patterns more than it does last year’s trends.

Take when people move, for example. In 2020, due to the spread of COVID-19, many people were forced to either cancel or postpone their move. This is why we saw 30% fewer people moving during “peak moving season” of May-July and 30% more in September-October time.

That’s not what 2021 looks like so far. If we look at when people moved this year and compare it to the last two years, we’ll see that the 2021 curve resembles 2019 a lot more than it does 2020. 

Another indication that moving in 2021 looks a lot more like 2019 than 2020 is how big the moves are again.

In 2020, likely due to many moves headed towards temporary, smaller accommodation, the size of an average move stood at 1,595 square feet, down by 282 square feet from 2019. 

But in 2021, the moves are big again—bigger than 2019 in fact. A typical move so far in 2021 was 1,793 square feet.

Based on the data, it looks like despite the surge of the Delta variant (or possibly in tandem with it), Americans moved in larger numbers in 2021 than in 2020 thus far.

As coronavirus continues to mutate and the overall vaccination pace slows, it’s impossible to predict what’s going to happen in the coming months. Whether moves will continue unimpeded or we’ll be forced to slow down and shelter-in-place again remains to be seen.

One thing we know for certain is that protecting your health and safety is still critically important when moving. If you are thinking of moving, be sure to check out our guides to moving during the pandemic and when states reopen to make sure your move goes safely, as well as smoothly. 

2021 Mid-year Moving Stats Infographic

covid infographic

Sources and Methodology
HireAHelper’s COVID Moving Study analyzed moving data in the U.S. booked through our online platform in 2021. Year-on-year comparisons of moving activity between 2021, 2020, and 2019 cover the period of January 1st through July 31st 2021.
Unless otherwise stated, all percentages, breakdowns, and summary statistics are derived from the data captured by HireAHelper.com and its partners.
Data on reasons why Americans moved came from HireAHelper customer surveys conducted in July 2020, December 2020, and September 2021.
Illustrations by Chelsea Beck

2021 Study: Do People Actually Regret Moving?

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Key Findings

  • Despite some regrets, 82% of respondents admit that moving has changed their life for the better
  • 30% of Americans that we surveyed regret at least something about their move
  • People who moved due to COVID are most likely to regret their move (31%)
  • Among those who regret their move, “moving away from their friends” (49%) and “leaving the area they used to live in” (40%) are the top regrets
  • A quarter (26%) of people regretting their move felt that way immediately after moving
  • Regretting their moves, 15% of respondents are considering moving back to where they used to live
  • Location (51%), size (41%), and layout (38%) of home are most appreciated aspects of new home

 

Do people actually regret moving? Whether moving for a new job or to retire, moving in with a significant other, or moving back in with your parents, there are many factors at play for making the big jump.

This is why it seems perfectly natural that no matter how hard we prepare for our move, we might regret something about it afterward. 

And yet, most Americans who moved in the last year don’t regret their decision. In fact, most believe it made their life better, despite some reported complex feelings from those who did end up regretting their moves. 

Read on as we break down our most recent survey of over 1,200 people who moved over the last year.

A Regret Shared: Almost One in Three Americans Who Moved Have at Least Some Regrets

While most of those who moved in the past year don’t look back, about a third (30%) have at least a few regrets about their move. 

Millennials are the least pleased with their move, as 37% of them regret at least something about it—more than any other generation. Gen Z, on the other hand, is a lot more optimistic, as only 27% of them found something regrettable about their move.

Why people move might also have an effect on whether they regret it. Those who moved due to COVID, for example, are more likely to experience regret (31% versus 22%).

Similarly, those who moved in search of cheaper housing are somewhat predictably more likely to regret their move (33%) versus those who moved to a new and better home (19%).

Leaving Friends, Neighborhood, and Family: America’s Biggest Moving Regrets

People often claim they don’t like their living situation (e.g., rent cost, landlords). But what does the data say?

In truth, moving is more of a complex trade-off. Moving somewhere for work or study sometimes comes at the price of moving away from family; moving to a bigger, better home often means exchanging a bustling, vibrant city for quiet suburban living. 

 

“While most of those who moved in the past year don’t look back, about a third (30%) have at least a few regrets about their move.”

 

So it’s no surprise that Americans reported these factors (over bad landlords!) as the most regrettable aspects about their overall move. According to respondents who reported having regrets about their most recent move, nearly half (49%) list moving further away from friends over all stated reasons. 

Meanwhile, some 40% miss the area they used to live in, while 38% have regrets about moving further away from family, the latter likely exacerbated by the restrictions on family gatherings brought about by moving during the COVID pandemic. 

moving regretsNearly a quarter (23%) of those who regret moving feel that way because it meant leaving their previous home. This sentiment is most common among those who moved to save money on housing costs.

But other moving regrets are less sentimental and more tangible. For 30% of people who claim to regret moving, it’s not where they chose, but how much they paid for the move that added to their disappointment. And for roughly 10%, it’s the choice of moving company they wish they could do over. (It literally pays to do your research.)

Instant Regret: A Quarter of Americans Who Regretted Their Move Knew It Immediately

When you know, you know, as the old saying goes. As many as 26% of Americans who have regrets about their move developed that feeling straight away. An additional 9% developed regrets after a week. Meanwhile, it took 26% one whole month to realize their newfound predicament.

That New Home Feeling: What Americans Like and Dislike About Their New Homes

Judging by our survey, if there’s one thing Americans make sure their new home delivers on, it’s location. Over 60% of those surveyed reported liking where their new place is, while only 9% aren’t happy with it.

 

“Millennials are the least pleased with their move, as 37% of them regret at least something about it—more than any other generation.”

 

moving regretsHome size (41%) and layout (38%) are the second and third most appreciated aspects of a new residence, while roughly a third pointed out they’re happy about the amenities in their home (32%) and the local area (30%).

The most common dislike with regards to the new place was financial. Almost one in five (19%) Americans who moved in the past year aren’t happy with the cost of their new home. In fact, people who moved specifically to save on housing costs are most likely (69%) to be unhappy with what they’re paying in rent or mortgage for their new place. Knowing this, it’s vital to make sure you compare the moving services in your area for the best possible price.

The Right Move: Despite Regrets, Most Feel Their Move Changed Their Life for the Better

More than 8 in 10 (82%) Americans who moved in the last 12 months feel that the move changed their life for the better. Even 77% of those who have some regrets about their new home or how the move went seem to believe it was the right thing to do.

Much like with regrets, people who moved for certain reasons felt differently about the impact their move had on their life in general. For example, a reduced 69% of those whose move was forced by COVID felt the move affected them positively. 

People whose primary reason for moving was a new or better job are also less likely to feel that way—only 68% of them felt their move had a positive impact on their life.

A small minority (5%) felt the opposite way, saying that moving made their life worse. Only about one in ten (13%) admitted moving didn’t really make a difference to them one way or the other.

Most people have difficulty with coping with and embracing change, even if change is for the better. This is probably why many Americans who moved in the last year have at least a few regrets about their decision, even though the data overwhelmingly suggests moving makes people’s lives better on the whole.

Sources and Methodology
All the figures referenced above are based on a multi-question survey of 1,253 Americans who booked and completed a verified move using HireAHelper.com within the last 12 months.

 

Illustrations by Nero Hamaoui

2020 Study: Where Do Americans Who Leave the USA Go?

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Key Findings

  • 10 million Americans are living outside the United States
  • Almost 40% of those living abroad never left the North American content. 28% live in Canada, 10% live in Mexico
  • Israel has 2.5% of all U.S. citizens living abroad
  • Luxembourg (+155%) and Qatar (+86%) saw the greatest net gains since 2017
  • Singapore (-18%) and Mali (-12%) registered greatest net losses
  • Between 17% to 39% of Americans moved abroad for love
  • 40% more Americans choose to retire abroad
  • 16% Americans keen to leave the U.S., 65% would do it for a better salary

According to the State Department, there are around 10 million Americans living outside the United States. 

What do we know about where they move? What are the top destinations for Americans moving abroad? Does Europe have the strongest pull? Do many Americans move to Africa?

There are lots of answers: hundreds of thousands of citizens leave the United States every year to pursue their careers, education, or, indeed, love. They also seek a lower cost of living, a better climate, or simply a fresh start by making a home for themselves in various corners of the world. Key trends in Americans moving overseas—backed up by research and statistics—are all below.

More Americans Move Abroad Every Year

How many Americans are there outside the United States? It’s a question that’s a lot more difficult to answer than it may seem.

The U.S. State Department estimates that number to be around 10 million in 2020, which is more than double the number of Americans residing overseas in 1999, when the same department reported it to be 4 million. Based on the statistics out of the United Nations, which are based on the foreign-born or foreign citizen population in each country of the world, the most recent estimate is 3.2 million.  While the actual number is likely to be somewhere in between, there’s one feature both of these sets of numbers share—there’s been a steady increase in the number of Americans living overseas.

North of the Border and Down in Mexico: Where Most Americans Abroad Currently Live

One way to answer the questions of where Americans leave to when they move abroad is to, well, look at where most overseas Americans live right now. But that number varies.

These breakdowns, as well as most others that appear in this post, are based on the data from the United Nations, as the U.S. State Department doesn’t publish data on the distribution of Americans across the world. More than one-third (38%) of U.S. citizens living abroad live in either Canada (10%) or Mexico (28%) – of course, the only two countries with whom the United States has a land border.

“The American population of Singapore shrank by more than 17% between 2017 and 2019.”

Following that, nearly 8% live in jolly old Britain, around 4% each in Germany and Australia, and nearly 3% in Israel. Rounding up the top 10 are South Korea, France, and Japan – all home to about 2% of Americans residing overseas. Check our handy map below and see which other countries are popular (or not so popular) with American citizens living abroad. On a regional level, a few interesting patterns emerge. 

With Canada and Mexico being countries with the highest population of Americans, it’s not that surprising that 42.4% of all U.S. citizens overseas stay in North America. What is surprising, however, is that nearly one in six Americans that live abroad live in Asia— more than in Australia & Oceania and South America combined.

Top Countries By Continent

Taking this regional view further, let’s look at the top countries in each of the world continents. While we have all the usual suspects coming out top in North America and Europe, two entries stand out elsewhere. Of all Asian countries, the relatively small state of Israel is in the number one spot with over 76 thousand Americans, accounting for 2.8% Americans worldwide. Although we can’t be sure, it’s likely down to strong cultural and economic ties between the U.S. and Israel.

“More than one-third (38%) of U.S. citizens living abroad live in either Canada (10%) or Mexico (28%)…”

In South America, curiously enough, it’s the smaller countries of Ecuador and Peru that attracted more Americans than any other country on the continent—23,386, or 1% of all U.S. citizens living overseas.  Again, we don’t know whether this is down to the beautiful landscapes and beaches Ecuador and Peru are known for, but they managed to beat the region’s economic powers of Brazil and Argentina to the top of American relocation preferences in South America. Now that we know – more or less – where in the world Americans live, which countries are Americans moving to?  

Goodbye Economic Uncertainty, Hello Tax Holidays: Where Are Americans Moving To?

While the number of Americans living in each country varied greatly over the last few years, we only considered countries, where there were at least 1,000 Americans, to ensure that the figures weren’t skewed by a dozen of Americans moving in or out.

Countries with Largest Net Gains 

Four of the top 10 countries that saw the highest % upswing in the # of U.S. citizens moving in are on the list of biggest corporate tax havens.

While Luxembourg does impose taxation on both personal and corporate income, Qatar and Cayman Islands do not, while Hong Kong’s personal income tax is capped at 17%.  Considering that Americans are obliged to file taxes even if they live outside the U.S., it seems logical that many would be keen to minimize the tax burden in their new home country.  Other than looking for a tax break, Americans seem to also seek out beautiful landscapes, with countries Iceland, Peru, and Czechia (formerly known as Czech Republic) all in the top ten having gained between 15% and 19% of American residents since 2017. On the regional level, it’s South America that saw the greatest % increase in new residents from the U.S. – 25% more Americans now live on the continent than in 2017.

Countries with Greatest Net Losses 

Looking at the countries that saw the biggest drop in the number of Americans living in them, Singapore is at the top of that list. The American population of Singapore shrank by more than 17% between 2017 and 2019. Other countries among the top 10 net losers include Tanzania, Mali, and Venezuela—countries whose political situation took a turn for the worse in recent years.

The three countries on the Mediterranean – Italy, Albania, and Greece – also have been going through economic difficulties in recent years.  The overall region with the biggest decline in transplants? Well, it’s the rest of North America. Maybe Americans aren’t as keen on moving to Canada or Mexico as they used to be.

To see how many Americans all the world’s countries gained or lost, check our map below. Countries that saw a net gain are shaded blue, and those that saw a net decline are shaded yellow.

Love, Languages, and Low Cost of Living: Why Americans Move Abroad

Okay, so why are people moving out of the country? In another parallel to how Americans move within the country, love tends to play a big part in the decision to move abroad.

“Four of the top 10 countries that saw the highest % upswing in the # of U.S. citizens moving in are on the list of biggest corporate tax havens.”

While our very own study from last year found that around a quarter (24%) moved to pursue a romantic relationship, a survey by the global expat site InterNations in 2018 found that 17% of Americans who moved abroad did so to join their romantic partner. Another 13% – to improve their language skills, while 44% noted that they enjoyed the lower cost of living in their new home country. A similar 2019 study by the American Expat Finance found that 39% moved abroad for romantic reasons, while 28% did so for professional opportunities, with a further 8% simply decided to go on an adventure. 

Retirement abroad also seems to be fast becoming a popular choice. The Social Security Administration noted a 40% increase in the number of retirees drawing their social security overseas, according to CNBC report, which cites affordable healthcare and better weather as key factors for those retiring abroad. According to the report by Randstad – a global HR consultancy – the top reasons for Americans to move to a different country were: better salary (66%), better work-life balance (64%), and to search for a more meaningful career (58%).

Do Americans Really Leave for Political Reasons?

What about the political discontent? Did many Americans move abroad due to the political situation in the country since the last election?

The studies of Americans abroad certainly don’t show it, although the impetus appears to be there. As evidenced by this Gallup survey, for example, 16% would prefer to permanently leave the U.S. rather than staying in America. That said, one study out of Kent University in the UK registered “leaving a bad or disappointing situation in the U.S.” as one of the top motivations for potentially moving abroad, noted by 49% of respondents.

One way to explain this is the discrepancy between aspirations and means. As Gallup’s survey points out, the interest to leave the country is highest among America’s poorest residents – those least financially capable of making such a radical change. Another way to explain the lack of politically motivated moves among expats is the role politics plays in their lives. While the situation in the country might be of concern to some, factors like relationships, family, career, and education play a much bigger part in a serious decision that is moving abroad.

Whether seeking for more sunshine, following their loved ones, or pursuing their career passions, millions of Americans have been moving abroad in the last few years. Sure, most of them only went just north or just south of the border, but many others traveled further, and now there are anywhere between 6 and 10 million Americans living in over 160 countries of the world.

Thinking of making a big leap? Consider your options, do your research, and make sure to weigh up all the pros and cons of changing countries. We at HireAHelper might not be able to help with that part, but can certainly help ensure that the stateside part of your move goes smoothly. 

Sources and Methodology
Unless otherwise stated, all the visualizations appearing in this post are made on the basis of the “International migrant stock 2019” statistics series produced by the United Nations. While its estimates of Americans residing abroad are likely conservatively low, it remains the only detailed source of such data.
As the U.S. doesn’t track the # of its citizens moving abroad and the United Nations producing data based on # of people with certain citizenship living in a given country, there are not deterministic figures on the number of Americans leaving the country each year. 
Countries with the biggest net gains and losses in the number of Americans living there were determined based on the change in the number of U.S. citizens in that country, as it appears by the United Nations statistics.
Countries for which there is no data, aren’t necessarily countries where no Americans live. These gaps in the data are likely down to peculiarities of local statistics on foreign citizen population, or simply lack thereof.
Illustrations by Deborah Lee

2019 Study: Moving Interstate Could Save (or Add) Up to $7,700 On Your State Tax Bill

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Totaling up moving costs when you’re moving out of state can leave you with sticker shock.

With a typical interstate move costing about five times more than a local move, you might be wondering if it will pay off.

One way to gauge the payoff of moving out of state is looking at how well it will set you up for financial success. A big part of that calculus is how much moving between states could lower (or increase!) your tax bill.

HireAHelper’s latest study compares taxes on income, sales, and property in all 50 states and the District of Columbia. We found that moving between states can have a big impact on your tax bill. If you were to move from the state with the least taxes to the most, for example, you’d owe around $7,760 more in taxes each year!

Key Findings

Tax Study
  • Where you choose to live could cost you up to $7,760 per year in additional local taxes. That’s the difference between the highest estimated state and local taxes in the District of Columbia, at $9,730, and Tennessee with $1,970.
  • Alaska has the lowest effective tax rate, with combined income, sales, and property taxes equal to 3.94% of a typical resident’s income. New York had the highest with an 11.93%, a effective local tax rate. That’s a gap of 7.99 percentage points in tax liability.
  • Across all 50 states, the average local tax bill was $4,066. This includes an average income tax of $1,655, property taxes of $1,538, and $873 in sales taxes. The average effective local tax rate is 8.2% of income.
  • State income taxes are the biggest indicator of local tax burdens. Of the 10 states with the lowest tax bills, eight levy no state income tax on earned income: Tennessee, Nevada, Florida, South Dakota, Alaska, Texas, Washington and Wyoming.
  • By contrast, the highest state income tax burdens were found in Washington D.C., at $4,781; Oregon, at $3,724; and Hawaii, at $3,272. Oregon also had the highest effective state income tax rate, at 7.30%, followed by Hawaii at 6.29%.

Where Total State and Local Tax Bills Are the Lowest

The very first statistic you should know about is “total taxes”. We made an interactive heat map with the total combined tax burden of each state’s income taxes, property taxes, and sales taxes.

The total state tax cost in each state

If you want a low tax bill, a smart strategy to get one might be to move to one of the nine states that levy no state tax on earned income:

  • Alaska
  • Florida
  • Nevada
  • New Hampshire
  • South Dakota
  • Tennessee
  • Texas
  • Washington
  • Wyoming

Among these states, New Hampshire is the only one that didn’t land among the 10 with the lowest total tax burdens. That’s no surprise, consider that of the three types of taxes we looked at, the average state income tax bill was the highest. With income taxes costing more, it’s also where locals stand to save the most.

Here are the 10 states that had the lowest dollar-for-dollar tax burdens:

  1. Tennessee: $1,970
  2. Nevada: $2,002
  3. South Dakota: $2,112
  4. Florida: $2,131
  5. Alaska: $2,274
  6. North Dakota: $2,617
  7. Texas: $2,859
  8. Washington: $2,886
  9. Louisiana: $3,027
  10. Wyoming: $3,095

Where State Taxes Are the Lowest, Compared to Wages

But that’s simply the total tax costs. Here’s an interactive map with the average effective tax rates, which means each state’s income taxes, property taxes, and sales taxes compared against the state’s average annual wage.

The effective state tax rate by state

We calculated the effective local tax rate, or the total tax burden as a percentage of the average wage in that state, to get a more complete picture of living expenses, due to outside factors that affect the cost of living.

For example, lower local wages would keep income taxes down. And low property taxes could be the result of a state real estate market with lower costs of living and property values.

Here are the 10 state where incomes are the highest, compared to their total state taxes:

  1. Alaska: 3.94%
  2. Nevada: 4.45%
  3. Tennessee: 4.52%
  4. Florida: 4.76%
  5. Washington: 5.02%
  6. South Dakota: 5.18%
  7. North Dakota: 5.44%
  8. Texas: 5.87%
  9. New Hampshire: 6.10%
  10. Delaware: 6.11%

The Top and Bottom State Income Taxes

Tax Study

As stated in the last section, unsurprisingly the top states tend to be those that levy no income tax. All nine of these states tied for the No. 1 spot for the lowest state income taxes.

After these states, however, which offer low state income tax rates? Here are the 10 lowest tax rates levied in all 50 states.

Curious about the states with the highest effective income tax rates? Only three states managed to have total state income taxes that totaled more than $3,000—and had effective state income tax rates above 5% to match.

Washington D.C. has the largest state income tax bills, dollar-for-dollar—but these are offset somewhat by higher local wages. Oregon, on the other hand, has some of the steepest tax rates that sets an effective tax rate of 7.30% on the state’s average wage.

Here’s a look at the 10 states with the highest effective state income tax rates:

  • District of Columbia: $4,781
  • Oregon: $3,724
  • Hawaii: $3,272
  • New York: $2,985
  • Massachusetts: $2,943
  • Connecticut: $2,818
  • Virginia: $2,620
  • Minnesota: $2,527
  • Colorado: $2,503
  • Illinois: $2,495

Top States With the Lowest Sales Taxes

Four states levy no sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon. Alaska is also the only one of these states where a local and municipal sales tax is charged; in the others, there’s no sales tax at the state or local level.  

Here are the top 10 states with the lowest average combined state and local sales taxes:

  1. Delaware: 0%
  2. Montana: 0%
  3. New Hampshire: 0%
  4. Oregon: 0%
  5. Alaska: 1.43%
  6. Hawaii: 4.41%
  7. Wyoming: 5.36%
  8. Wisconsin: 5.44%
  9. Maine: 5.50%
  10. Virginia: 5.65%

You’ll need to watch for higher sales taxes in some states, however. The highest state and local sales tax rates are found in Tennessee, Louisiana, and Arkansas. Tennessee’s average combined state and local sales tax rate is 9.47%, while Louisiana’s is just behind at 9.46%, and Arkansas levies an average 9.43% sales tax.

The States With the Lowest Property Taxes Per Capita

But what if you’re planning to become a homeowner (or buy property) in you destination state? Property taxes might be a top concern. Comparing property taxes fills in the picture of what your tax burden could be in a given state, and can help you anticipate how much they’d add to your housing costs.

Here are the 10 states where the property taxes per capita are the lowest:

  1. Alabama: $548
  2. Oklahoma: $699
  3. Arkansas: $712
  4. New Mexico: $768
  5. Kentucky: $775
  6. Tennessee: $836
  7. Delaware: $860
  8. Louisiana: $887
  9. West Virginia: $915
  10. Idaho: $944

Property taxes are highest in the District of Columbia, New Jersey, and New Hampshire. These are the only three states where the collected property taxes per capita top $3,000.

New Hampshire also happens to be the only state that levies no state income or sales taxes, which means that it carries low tax burdens despite high property taxes. But for New Jersey and D.C. residents, these high property taxes pile onto high income and sales taxes from their states, too.

Full Rankings of State Tax Burdens

Tax Study

Moving is always a lot of work—but planning a long-distance move can be particularly back- and budget-breaking. Check out the differences in the taxes you pay now and the taxes you’d pay in your state destination. You’ll know whether you can expect to come out ahead or will have more tax costs to plan for after a move.

See exactly where your state ranks inside the full rankings of all tax burdens by state. You can sort the table by clicking column headers.

Methodology and Sources

HireAHelper surveyed state income taxes, state and local sales taxes, and property taxes in all 50 states and the District of Columbia to estimate the total tax burden for a typical resident.
State income taxes were calculated based on each state’s mean wage data from the Bureau of Labor Statistics’ (BLS) May 2017 National Occupational Employment and Wage Estimates, using SmartAsset’s income tax calculator.
Sales taxes were calculated based on the average combined and local sales tax rates in state, as reported by the Tax Foundation in a January 2019 Report,  and assuming a spend rate of 27.5% of the state’s mean wage.
Property taxes were sourced from the Tax Foundation’s State & Local Property Tax Collections per Capita, FY 2016. The Tax Foundation calculated these amounts by averaging out property tax revenue collected in each state across the state’s population, to get a per capita property tax.
We calculated and added up the tax burden in each state according to the above, to find the total bill for income, property, and sales taxes. Effective tax rates were calculated as each state’s total state taxes as a percentage of the local mean wage, per BLS data.
Header illustration by Marlowe Dobbe

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