Americans Are Moving to These 5 States to Save Money

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  • Many Americans moved to South Carolina in 2021.
  • Find out which other states people move to so they can save money on their cost of living expenses.

For Americans who want to reduce their spending, moving to a state with a lower cost of living can be an excellent option.

The cost of living varies significantly throughout the United States. In some cities and states, prices are so high that residents choose to move elsewhere to afford a more comfortable life. While people move to other states for various reasons, money can be a big factor.

A study by Neighbor found that the leading reason people were planning to move was to lower their cost of living expenses.

Other reasons for moving included moving closer to family and increased work flexibility. With growing remote work opportunities, workers have more control over where they live.

Americans are leaving these states

According to a report by northAmerican, a high number of Americans are leaving states like California, New Jersey, Illinois, Michigan, and New York. All of these states are among the top 20 most densely populated states.

Illinois was at the top of the list for outbound moves. In 2021, 69% of state moves were outbound, while only 31% were inbound.

States like California and New York are among the most expensive, so it's not surprising that residents leave for more affordable destinations.

Additionally, these states have high taxes. New York, New Jersey, Illinois, and California are among the states with the highest local and state tax combinations.

Americans are moving to these states

The same northAmerican report lists North Carolina, South Carolina, Tennessee, Florida, and Idaho as top destinations for movers in 2021.

South Carolina was at the top of the list for inbound moves. In 2021, 66% of moves were inbound, while 34% were outbound.

Should you move to a different state to save money?

Are you sick of paying high living costs in your current state?

Only you can decide if moving to another state is feasible and makes sense for your financial situation. As you consider your options, you should carefully research living costs.

Find out what the average housing costs run, what taxes are like, and what kind of costs you can expect for other living expenses in the area. Doing this can help you decide if it makes sense to move and if a move could help you reach your financial goals sooner.

You'll also need to figure out if you will need a new job or can continue to do your current job remotely. If you need to get a new job, moving to an area with high salaries can be beneficial.

Where should you move?

If you have the flexibility and have enough money in your savings account to cover the cost of a move, you may be wondering where to go.

The following articles may help you choose:

Whether you stay in your current area or pack up and move elsewhere, a budget can help you stretch your money further.

You can use budgeting apps to make budgeting simple and stress free.

For additional money-saving tips, check out these personal finance resources.

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