State and local policy makers on the West Coast are consistently adversarial to landlords and business owners. Through a combination of exorbitant taxes, wasteful spending and egregious regulations, these states have managed to repel employers and employees alike in massive numbers. There is little reason to believe these trends will change. Outside of a few isolated pockets of coastal wealth that defy broader market forces, it is difficult to justify the long-held assumption that West Coast
property values will always increase axiomatically. Where, then, should one look to invest in rental housing? Using a blended score based on population growth, job growth and tax climate , below are the top ten states for real estate investment in 2024. California was 36 th on this list and 48 th in terms of tax climate (ranked only behind New York and New Jersey for worst taxes).
OVERALL RANK*
POP. GROWTH
JOB GROWTH
TAX CLIMATE
STATE
1 2 3 4 5 6 7
2 6 3 5 7 4 1
1 5 3 2 7 6 38
8 4
UTAH FLORIDA ARIZONA IDAHO NORTH CAROLINA TEXAS NEVADA COLORADO GEORGIA SOUTH CAROLINA
14 16 9 13 7
8 9 10
9 8 10
12 13 14
27 32 29
* Excludes states with populations of less than 2 million.
If you are considering relocating your real estate equity to another state, start by giving your current property a quick check-up: https://1031- capital-solutions.involve.me/yield-calculator. By
estimating the current yield of your rental property as a percentage of your equity, you can make a more educated decision whether to keep, sell or exchange your current property.
RICHARD D. GANN, JD Managing Partner 1031 Capital Solutions (800) 445-5908 1031CapitalSolutions.com
Richard (Rick) Gann is an attorney, licensed real-estate broker, and general securities principal specializing in 1031 exchange solutions and he is co-author of the book How to Retire from Being a Landlord.
Disclaimer : This is for informational purposes only, does not constitute individual investment advice, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Past performance is not indicative of future results. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. 1031 Capital Solutions is independent of CIS and CAM. Sources: Population growth: http://www.usa.com/rank/us--population-growth-rate--state-rank.htm
Job growth: https://www.usnews.com/news/best-states/rankings/economy/employment/job-growth Tax climate: https://taxfoundation.org/research/all/state/2024-state-business-tax-climate-index/
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