Many individuals, especially from very high cost of living areas, moved to places with more affordable living expenses when remote work became the norm. Health concerns also influenced these moves, as people left densely populated cities to escape large outbreaks.
Even as the pandemic winds down in the U.S., these changes are sticking. Many businesses now offer long-term remote or hybrid work, adapting to employee preferences for working from home. Conversely, some companies insisting on office returns face pushback, contributing to labor shortages when employees resign rather than comply.
The housing market has been another challenging factor. With homes selling rapidly and often far above the asking price, some people delay their home-buying plans. This price surge is notable across various regions, particularly in areas with high living costs.
Keep in mind that things change. People can still afford to rent, especially with rising housing costs. Those looking to purchase a home might find more favorable conditions. Eventually, factors like increased interest rates by the Federal Reserve, improved home-buying rates, and balancing supply and demand are expected to normalize both the rental and home-buying markets.
Essential Things to Consider Before Moving
If you are contemplating relocating away from an area with a high cost of living areas soon, consider the following points before transitioning.
Remind Yourself Why You're Moving
Firstly, identify the core reasons behind your decision. While financial concerns often play a significant role, they might not be the only factor. Consider these additional motivations when moving away from a very high cost-of-living area:
- Seeking better job prospects or entrepreneurial opportunities in a new location.
- Wanting to be nearer to loved ones, including family and friends.
- The pursuit of a climate more suited to your daily activities and health.
- A preference for cost of living high and going up in a smaller, quieter community, away from the hustle and bright lights of a busy city.
- Easier access to amenities and resources that support your hobbies, like specialized classes, scenic trails, or natural landscapes like rivers, lakes, and mountains.
These considerations are vital when leaving an area where the high cost of living areas and continues to rise. By thoroughly evaluating your reasons, you can ensure that your move aligns with your personal and professional goals, leading to a more fulfilling lifestyle change.
Evaluating Financial Aspects of Relocation
When considering a move primarily motivated by financial reasons, comparing various expenses thoroughly is crucial. Start by examining the average rent or mortgage payments of your potential new location. However, don't stop there. Look beyond the basic rent costs to understand utility expenses, including electricity, water, and internet—factor in transportation costs, including gas and car insurance rates.
Groceries are another significant aspect. Evaluate their availability and prices, as these can vary widely between locations. Taxes are an often-overlooked but vital element in your financial equation. Investigate the local sales, property, and state income tax rates, as these can substantially affect your overall expenses.
Living in high-cost areas often comes with hefty price tags, but it's not a given that relocating will drastically reduce your costs. To get a clear picture, compare all your regular expenses, not just housing costs. This comprehensive approach will help you determine if the financial benefits of moving are sufficient to outweigh the drawbacks of leaving your current home.
Remember that high-cost places can be deceptive. They may have benefits, but they can be costly. These factors must be considered as the cost of living high and going up rises in many regions. You must consider all potential costs to make a financially smart, lifestyle-friendly move.
Considering the Balance of Life Quality When Relocating
Planning a move involves more than money. What would you give up if you moved somewhere cheaper? Imagine leaving a very high cost of living area where everything is within walking distance. In your new location, you might drive more. This means higher car expenses and more time spent on the road.
Think about what's around your current home. Are there many restaurants, supermarkets, entertainment venues, and parks nearby? Low-cost areas may have fewer conveniences. Your life may change in ways other than money when you move. You may miss these conveniences in your new home if they're vital to your lifestyle.
Consider all these factors before choosing. Consider the lifestyle and convenience changes needed to lower the cost of living high and going up before moving. Services may be more varied in places with higher cost of living than inflation.
Before you pack, consider how these changes will affect your routine. This approach will ensure your move improves your quality of life and finances, preventing regrets. Moving to a high-cost area may make you consider what you're losing more than what you're gaining.
Considering Social Factors in Relocation Decisions
When contemplating a move, especially to a very high cost of living area, evaluating your social network is crucial. Think through it: Will I have family or friends in my new place? If not, consider how you meet new people as an adult. High-cost areas may have busier or less available people, making it harder to make new friends.
Platforms like Meetup.com offer opportunities to meet new people, but forming deep connections as an adult in a new community takes effort. Your ability to adapt socially varies based on your personality and lifestyle. This aspect is as important as the financial factors in your moving decision.
Moving across town, the country or the ocean is big. It's more than moving to a cheaper area. Despite these financial benefits, social factors and quality of life must be considered. Living in a high-cost, growing-population area may not be your top priority.
Never rush; weigh your options when time is not of the essence. Each option must be considered for pros and cons. Moving is about your social and emotional health, not just money.
Bottom Line
Moving from a high-cost region requires more than cash flow estimations. There are other factors besides avoiding high prices and cost of living high and going up costs. This choice will affect your social circle, lifestyle, and health.
