Why are Homeowners are Moving from IL to Michigan?
Mar 23, 2022
The number of people leaving Illinois for Michigan has been on the rise in recent years. What are the major influences on this trend? One factor easily stands out. The cost of living continues to rise in Illinois, as more homeowners are deciding to leave the state.
So why else are people moving from Illinois to Michigan?
One of the major factors driving people out of Illinois is high taxes. Illinois has some of the highest property taxes in the country and a flat income tax rate that sits around five percent. This type of taxation structure is forcing homeowners on fixed incomes or those living paycheck-to-paycheck to leave. The moving trend is favorable for people moving to Michigan from Illinois.
Another significant factor is traffic congestion. It has become some of the worst in the country. Cities and suburbs around Chicago have seen their highways clogged with more cars as more people move to these areas to escape costly city living. Along with a growing population that has increased over five times since 1970. The state’s infrastructure is simply not equipped to handle all these cars. This leads to bumper-to-bumper traffic for hours each day. This type of city to suburban migration has led to increased traffic congestion, which has pushed homeowners over the edge. Compare this with Michigan, where the population has only increased by 60 percent over the same period.
However, the biggest factor for many homeowners is the high cost of living, especially housing. The median price of homes currently listed in Illinois is $235,000 while the median price of homes that sold is $210,900 according to realtor.com when looking at 2021 figures. The average home value has gone up three percent over the last year and Zillow predicts that prices will rise another two percent over the next year.
In addition to the excessive cost of living and traffic congestion, homeowners are also leaving Illinois because of the lack of access to water. This issue is becoming more prevalent as droughts continue to plague states all over America. In Illinois, there are areas where residents have been told not to use their tap water for any reason due to contamination issues. This is a major concern for homeowners and there are plenty of other states that offer safe access to freshwater.
How does Michigan compare?
Michigan has been the top state in terms of migration from Illinois over the last several years. The reason so many people are making the move to Michigan is because of the lower cost of living, access to freshwater, and waterfront property. The state has over 11,000 miles of coastline on three Great Lakes – Superior, Huron, and Michigan. In addition, Michigan has over 100,000 inland lakes, which is more than any other state in the country. This offers homeowners plenty of options when it comes to finding a home with easy access to water or near water.
The lower cost of living is attracting homeowners moving to Michigan. While the average home value has been on a steady decline since 2016. The median price of homes in Michigan is currently $130,000, falling by five percent over the last year. Zillow also predicts that the median price will continue to drop. The state also has a flat income tax rate of four and a quarter percent. Compare this to Illinois, where the median home price is currently $235,000 and a flat income tax rate of five percent.
On another note, more people are looking for waterfront property. Whether for a new home, possibly a second home. As well as Chicago suburbanites who prefer to leave the city in warm weather to enjoy it at a summer home along Lake Michigan. With nearly 3,000 miles of shoreline on the Great Lakes, Michigan offers plenty of beachfront property that Illinois cannot compete with. And as baby boomers retire, they are increasingly looking for places to spend their golden years where they can enjoy the water. Michigan offers all of this and more, making it a location worth consideration for homeowners looking to leave Illinois or move a summer home to the popular cities of SW Michigan including St. Joseph, South Haven, Grand Haven and even Michigan City, In.
So, what does this mean for Illinois?
Homeowners are fleeing the state in droves due to the high cost of living, lack of access to water, and traffic. Those considering moving from Illinois should consider taking a look at what the Wolverine state has to offer. If your priority is a lower cost of living, easy water access, and less congestion, then Moving to Michigan may be a suitable place to call home.