Surge in Sunbelt real estate prices means wealthy Americans moving to Florida or Texas are saving $38K less a year than they used to

New Yorkers who fled to the Sunbelt in search of a cheaper cost of living are finding the savings to be far less lucrative than they were four years ago, new data shows. 

The Covid-19 pandemic sparked an exodus from the Empire State to Florida and Texas, as Americans searched for lower taxes and a better quality of life. 

But amid an influx of new residents, housing costs have surged in these Sunbelt cities since 2019, according to a study by financial information provider SmartAsset. 

This means that wealthy New Yorkers who moved to Miami in 2023 saved an average of $88,036 - 28 percent less than the $122,956 they typically saved in 2019.

Those earning more than $250,000 who moved to Dallas and Austin, meanwhile, saved 20 percent and 25 percent less in 2023 than in 2019, according to the data reported by Bloomberg. 

New Yorkers earning more than $250,000 who moved to Miami in 2023 saved an average of $88,036 - 28 percent less than the $122,956 they typically saved in 2019

New Yorkers who fled to the Sunbelt in search of a cheaper cost of living are finding the savings to be far less lucrative than they were four years ago

This means that the savings that come with a Dallas move have shrunk by almost $28,000 - from an average of $135,887 in 2019 to an average of $108,208 in 2023.

And while those who moved from New York City to Austin in 2019 would have typically saved $154,564, SmartAsset found, last year they saved $116,195 - some $38,000 less.

While Manhattan is still the most expensive place to live in the US, higher inflation rates in Miami, Dallas and Austin mean the cost of living in these cities is catching up to New York, Jaclyn DeJohn, the managing editor of economic analysis at SmartAsset, told Bloomberg.

'The inflation over the last few years has impacted Manhattan less than Miami, Dallas and Austin,' DeJohn said. 

'The real, or inflation-adjusted, purchasing power saved when moving from Manhattan to any of the three cities has actually decreased over the last four years, even after accounting for all the cost and tax differences.'

Florida and Texas do not charge income tax, which is one of the primary reasons that many Americans have moved there from high-tax states such as New York.

According to census data, 91,000 New Yorkers moved to Florida in 2022, while 31,000 fled to Texas. 

The US Census Bureau has revealed an estimated 545,598 residents moved from the Empire State to other parts of the US in 2022 - with Florida, Texas, New Jersey, Connecticut, Pennsylvania and California being the top states for relocation

But while home prices in Manhattan have increased by 29 percent in the last four years, home prices in Miami have surged by almost 44 percent, according to SmartAsset.

The cost of leasing an apartment in Manhattan has gone up 3 percent since 2019.

But this pales in comparison to Miami, where an influx of residents, jobs and investment has meant that rent has soared by 37 percent in the last four years. 

Austin is also no longer the bargain that it once was, according to SmartAsset.

Florida and Texas do not charge income tax, which is one of the primary reasons that many Americans have moved there from high-tax states such as New York (Pictured: Dallas and Austin)

The value of properties in Austin have gone up by almost 56 percent, while rent is now almost 26 percent more expensive than it was in 2019.

The price of energy and utilities have also gone up more than 12 percent, while it is now over 32 percent more expensive to fill up a tank of gas.

The cost of gas and utilities have also gone up in Dallas, the study found, by 33 percent and almost 17 percent, respectively. 

Home prices are up 21 percent, but a construction boom in the city means rent has actually fallen by 1 percent since 2019 - and is lower than the national average.