States Baby Boomers Are Moving Away From

• Author: Jenny Wolff
• Posted: 2025-03-27

A surge in property taxes is pushing American retirees to leave expensive states for more affordable ones, according to John Burns Real Estate Consulting's recent data analysis.
 

Why It's Happening

Across almost all US cities, property taxes jumped between 2019 and 2024, reports Redfin, making it harder for Americans to buy or keep homes. Even with tax rates slightly down, homeowners are paying more because home values have risen rapidly.

This spike in home costs, including property taxes, hits retirees hard. Many live on a set income, and higher expenses can eat away at their savings.
 

What's Going On

Ian Kennedy, a data expert at JBREC, charted property tax rates based on 2023 numbers from the US Census Bureau. Dark red on the map marked areas where taxes were over 2 percent of home value. Light beige meant taxes below 0.5 percent. Tax rates differ by area because they're set by local governments.

High taxes were seen on the East Coast, notably in New York, New Jersey, and Pennsylvania, where rates were from 1.75 to 2 percent or more. The Midwest, specifically Illinois, also had high taxes, while the West and South, except for Texas, enjoyed lower rates.

When looking at where older Americans (65+) are moving, Kennedy found that they choose states with lower property taxes.

In states with steep taxes, like New York, New Jersey, and Illinois, barely over 1 percent of the 65+ age group moved in from other states. On the other hand, states like Nevada, Delaware, and Arizona, with much lower taxes, saw over 2.5 percent of their elderly population moving in from elsewhere.
 

Where Are Retirees Relocating?

Retirees aim to move far but tend to stay within the same region. For instance, many East Coast retirees still settle down on the East Coast.

Nevada attracted about 3.5 percent of retirees from other states — a lot of them from California. Delaware welcomed 3.3 percent, mainly from New Jersey, Maryland, or Pennsylvania.

This data represents the percentage of folks over 65 who moved in from another state.
 

Why This Move?

For retirees, property taxes are a big housing expense and a key factor in their relocation decisions. Older Americans often have larger, more valuable homes, leading to heavier tax burdens. However, they're less affected by mortgages or other taxes compared to younger folks.

The US Census Bureau's data from 2023 shows retirees leaving their state are likely doing so for housing purposes (33 percent), family needs (27 percent), or other reasons (24 percent).

Sometimes, retirees move to be nearer to their children and grandkids who might not afford high cost-of-living states, explains Chris Porter from JBREC to Realtor.com.

Yet, the influx of retirees to more budget-friendly states could increase competition for homes, possibly making those areas less affordable over time.

Read more: Home Buying Budget in 2025: A Guide to Affordability and Mortgage Options

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