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The Real Deal Los Angeles

Resi agents see boost in income from a California out-migration

In some cases, they’re fleeing to low-tax states like Florida or North Carolina
January 15, 2019 12:00PM

Map of the United States (Credit: iStock)

While some residential real agents in California experienced a dip in their business last year, agents who specialize in relocations are finding success despite a general market slowdown.

Homeowners are increasingly choosing to relocate from California and other pricey states to more affordable spots such as North Carolina or Texas, the Daily News reported. That’s resulted in a boost for real estate agents who focus on relocations, making them experts in cities nearly 3,000 miles away.

In some cases, realtors are setting up classes to advise clients on the transition.

They’re also specializing in different cohorts. Some tend to older residents who have fixed incomes, while others work predominantly with younger professionals who are more open to the idea of moving.

As the population in California continues to grow, so does the number of residents fleeing the state. In the Bay Area, where the median home sale price is upwards of $900,000, outward migration hit its highest point in more than a decade. For comparison, the median home value in North Carolina is about $270,000.

The exodus isn’t only happening in California. High-net-worth buyers from New York and New Jersey are also moving to Florida, where there is no property tax. The phenomenon has grown under President Trump, who passed the Tax Cuts and Jobs Act of 2017, which limits the state and local income tax (SALT) deductions. [DN]Natalie Hoberman