California Exodus Takes a Huge Leap Forward as Citizens Flock to Las Vegas to Avoid New Tax Hike
Wealthy Californians are moving from the Golden State to Sin City as they seek to avoid yet another tax hike.
The real estate market for Las Vegas, Nevada, is seeing an influx of Californians as the state considers a one-time 5 percent fleecing of their assets.
The prospect of the so-called “wealth tax” has many Californians looking to move.
As a result, more than 23 percent of listing views in the Las Vegas market are coming from Los Angeles, according to a report from Realtor.com.
San Jose, California, ranks second, accounting for 8 percent of listing views in Las Vegas.
Riverside, California, ranks third, with 4 percent of views originating from the area.
Tania Jhayem, a luxury real estate agent in Las Vegas, told Realtor.com that she has witnessed a trend of Californians fleeing to her city.
“There has been a noticeable increase in affluent buyers relocating from California,” Jhayem remarked.
“Many of these clients are selling higher-priced homes in coastal markets and bringing significant equity with them, which allows them to purchase luxury properties here either with large down payments or all cash.”
The new arrivals are indeed coming with significant buying power.
In Los Angeles, the typical home costs $1.03 million, and in San Jose, the typical home price is an even higher $1.2 million.
Las Vegas’ median listing price is now $465,000 — less than half as much as those two California cities.
Beyond the relatively cheaper real estate, Californians making the move to Nevada will see a number of other financial benefits, per Realtor.com senior economic research analyst Hannah Jones.
“With no state income tax and far greater buying power, Vegas allows Californians to upgrade in home size, quality, or location in ways that are increasingly out of reach in coastal California markets,” Jones said.
For Jhayem’s clients, those incentives are indeed factors drawing them to Las Vegas.
“Taxes and overall cost of living are major drivers, and Nevada’s lack of state income tax continues to be one of the most frequently cited reasons for the move,” she remarked.
“For some clients, it’s purely financial. They can sell a $2 million to $3 million home in California and purchase a comparable or larger property in Las Vegas for less while reducing their ongoing tax burden.”
California is not the only state eyeing a wealth tax on individuals’ assets.
In both Washington state and Illinois, such legislation has been proposed or is advancing, according to a report from the Washington Free Beacon.
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