More and more people are packing their bags and leaving NJ in droves, and it’s no coincidence. Namely, the Golden State has been the number one state people are moving away from two years in a row. Whether you’re already living in NJ or planning to move here, you must be wondering why is it so. The deciding factor seems to be the lack of job opportunities, but there’s more to these migration patterns than just that. So, let’s take a look at all the reasons behind NJ outbound moves to help you form a clear picture.
Even if you don’t leave in NJ, you probably know of the notoriously high-income taxes. Other states usually have local income taxes that are going to funding different expenses. On the other hand, in New Jersey, they are all covered by property taxes. This means that homeowners are shouldering the cost of municipal budgets instead of the state. If you want to test this, just ask a friend from another state and compare their cost of property taxes. This issue is the main reason behind NJ outbound moves and no wonder. People feel they don’t want to retire in the state where they are basically losing money every year they own a home here. That being said, you still don’t have to worry about selling your home during the COVID-19 crisis, as we’ve written a guide about it.
And while it’s true that property taxes are high, it’s not without a reason. New Jersey citizens have a high standard and demand high-quality service. The biggest percentage, however, goes to education. So, unless they have kids in schools or are students themselves, people are deciding to move to more affordable states.
The cost factor
Speaking of affordability and quality services, it’s easy to see how these two don’t go well together. Indeed, NJ outbound moves are on the rise because of this factor as well. Of course, with its proximity to the Big Apple and Philadelphia, this is a highly sought-after area. This, in turn, makes New Jersey the densest state in the country, which means the land is expensive. Not only that, but the large population centers on the East Coast create competition as well. As a result, everyday goods are costly as well. Overall, things aren’t looking that shiny, nor are there any chances on the horizon. To put things into perspective, moving away from your home state isn’t crazy when it’s the third most expensive state in the nation.
If you think that you’ll be able to dodge the bullet if you don’t own the property, think again. In fact, as a renter, half of your rent will go on property taxes! With all this in mind, it’s no wonder so many are packing up and finding cheaper alternatives.
Pension system as one of the reasons for NJ outbound moves
In order to put down roots in a place, people have to be able to imagine their future in this place. Now, long-term plans are inevitably linked to retirement. Now, you can find all the best housing solutions for seniors in 2020 here in NJ, it’s just too costly. This has led to New Jersey being rank an increasingly worsening state for retirees. No wonder there are so many seniors deciding on NJ outbound moves. When we look at the scores in more detail, we can see that the level of financial security has been declining as well. Then, there’s the unemployment rate for citizens older than 55. It’s not uncommon to work through the retirement years, but what happens when there are no opportunities? Most of them decide to move away.
All in all, there is no doubt that there is a deep pension crisis happening for a while now. The promises are there, but the underfunding still remains an issue. Right now, there is a trend to move and find a new home in Georgia. Seeing as it is in the top 3 states to retire in, it’s not surprising.
Slow job growth
We’ve covered the topics of high costs and lack of employment prospects for older workers. However, possibly the biggest reason, after taxes, is the slower job growth. What’s especially problematic is the Millenials outmigration that is becoming all the more common here in the Golden State. And those that stay are usually living with their parents, so They are fleeing the state in search of better career opportunities and usually going to NYC. Other popular states are Oregon, Arizona, and Nevada as well. Launching the business is also deemed to be quite risky, which results in more NJ outbound moves. All in all, contacting moving professionals will surely help you out if you’re looking for sound advice on job offers in surrounding states.
Basically, there’s a shift towards information technology-dependent economy, and disparities are more and more noticeable. Those that lack skills seem to have no other option but to flee.
Should you stay or should you go?
It’s one thing to theorize and quite another to reach a final decision. Of course, if this is your home state, you can always come back as you’ll have your parents and family to fall back on. It all comes down to thorough research as the key to conscious decision-making. First off, you need to analyze your current NJ financial situation and see how you stand. Then, you should find the new destination of choice where you plan to relocate. Most of NJ outbound moves are, as we mentioned, either to NYC or states like Oregon and Arizona. But, it’s up to you to decide what place you want to call home.
In the end, maybe you’ll even find a way to stay in the Golden State. A little shift in perspective can do wonders, and you never know when a stroke of luck may hit you. Maybe you land a great job opportunity that suddenly makes your stay in NJ more bearable. You never know!