Middle-Class Movers are Choosing Las Vegas, Phoenix, and San Antonio as Top Destinations

Las Vegas: Affordable Homes and Low Taxes

Middle-class Americans are increasingly moving out of state to achieve an affordable lifestyle. They’re heading to cities in Arizona, Nevada, Florida, and Texas, according to a new H&R Block report using 2022 tax data. The report revealed that Las Vegas was the second-most popular destination for middle-class movers coming from out of state. One of the main reasons for this surge in popularity is the abundance of homes for sale in Las Vegas, which has helped keep prices down. In addition, the city does not have a personal income tax.

Realtor Andrew Arevalo, licensed in Nevada and Colorado, described Las Vegas as the new up-and-coming destination for movers seeking affordable homes and low taxes. He compared its growth to that of Denver, which was previously a popular choice for relocation. Arevalo said that Las Vegas is attracting people from California and other states, who are prioritizing their bottom line and taking advantage of Nevada’s lack of personal income tax.

Phoenix: A Destination for California Movers

Phoenix, Arizona, was identified as the number one destination for both in-state and out-of-state middle-class movers in 2022 according to the H&R Block report. Many people from California are choosing to move to Phoenix in search of a more affordable cost of living. However, this influx of individuals escaping high costs has led to an increase in home prices. The median sales price for a home in Phoenix reached its peak in May 2022 at $470,000, compared to $261,000 in the same month in 2019. Despite this, Phoenix remains a popular choice due to its relatively lower cost of living compared to California.

San Antonio: Maintaining Affordability in Texas

San Antonio, Texas, ranked as the third most popular destination for out-of-state movers and the fifth most popular for in-state relocation, according to the H&R Block report. During the pandemic, Texas experienced a surge in popularity, with many people relocating from California to Texas. While cities like Austin saw a rise in home prices, San Antonio has managed to maintain its affordability. This has attracted buyers who are looking to get more value for their money. Despite the ongoing interest in Phoenix and San Antonio, real estate agents believe that Las Vegas is the next emerging market.

The Next Big Thing: Las Vegas

Realtor Andrew Arevalo believes that Las Vegas is primed to become the next major hotspot for middle-class movers. He predicts that the city will surpass cities like Los Angeles in terms of growth and desirability. Arevalo urges investors not to overlook Vegas, as they may regret missing out on its potential. He even went as far as coining the term ‘Las Fornia’ to describe Las Vegas, highlighting its rise as a sought-after relocation destination.

Source: Middle-class movers are heading to these three cities in search of affordability