They’re hopping on the Chattanooga Choo Choo!
Blue state residents fleeing their high-tax homes for greener pastures have gobbled up about a third of the homes in a stunning new development just outside of Chattanooga, Tennessee — where there’s no state income tax.
Buyers from California, Illinois, New York and New Jersey have bought a huge chunk of the 2,200 homes that have already been made available in River Gorge Ranch, according to developers.
“When I saw the property, the views, and the sunsets at River Gorge Ranch, I expected to get inundated with buyers and potential buyers interested in the development,” said John “Thunder” Thornton, CEO of Thunder Enterprises and Developer of River Gorge Ranch. “What surprised me is where those buyers and thousands of inquiries from potential buyers are coming from: high tax states especially California, New York, and Illinois.
“Buyers are telling us that they are attracted to the environment, the beautiful scenery, the development, the restaurant – and they are saying that they have had enough of the sky-high taxes. Affordability seems to be a key issue. Tennessee has no state income tax. It wants people to keep the money that they earn.”
Of the 715 homes sold thus far in River Gorge Ranch, 136 of the buyers were from the home state of Tennessee. No surprise there.
But 183 buyers combined were from California (104), Illinois (54) and NY-North Jersey (25).
Illinois is the blue state closest state to Tennessee, while California is the farthest away.
“As of this moment, we have had thousands of inquiries and almost 185 buyers who have closed on homes sites from those three high tax states – more than the number of folks who bought sites from Tennessee,” Thornton told The Post. “We look forward to hosting anyone who would like to enjoy the beauty and the affordability of River Gorge Ranch.”
River Gorge Ranch sits in the mountains overlooking the Tennessee River and is less than 20 minutes from downtown Chattanooga.
Among the new residents is CBS sportscaster Jim Nantz.
It’s not just the River Gorge Ranch development that is attracting West Coast, East Coast and Midwest urbanites to the Volunteer State.
According to the 2024 US Census, 19,670 Californians became Tennesseans, as did 10,866 of Illinois transplants, 7,530 former New Yorkers and 1,129 New Jerseyans.
Because of stagnating or shrinking populations, one analysis claimed New York and California could each lose nearly 10% of their congressional representation after the next US Census is conducted in 2030 – with the Empire State poised to lose two seats and Cali expected to drop four.
Illinois is also projected to lose two House seats.
California is bleeding residents for the first time since the pandemic — with more than 50,000 leaving the Golden State last year, a new report last week revealed.
The California Department of Finance recorded a 0.14% decline in population statewide as of Jan. 1, or a net loss of 54,000 residents.
New York suffers from net domestic outmigration loss, more New Yorkers moving to other states than people moving in from elsewhere in the US.
Most people who leave New York City stay in the region, moving to Long Island, Westchester County and nearby states including New Jersey, Connecticut and Pennsylvania.
But many also move to the Sun Belt.
“More New York City residents of all incomes, races, ethnicities, and ages have moved to other parts of the U.S. than moved in,” the Citizens Budget Commission said while recently releasing its new “Competitive NYC” data analysis. “Such broad-based domestic outmigration demonstrates that many differently-situated New Yorkers no longer find New York City’s value proposition compelling.
“Those leaving the region most commonly move to Florida, California, Texas, North Carolina, and Georgia. People leaving the city may be choosing a place offering them a higher value proposition through a better mix of quality of life and cost of living.”
California has the highest maximum state income tax rate 13.3%, followed by Hawaii at 11% and then New York at 10.9%.
But wealthy New York City residents pay the highest income taxes in America when factoring in the municipal 3.876 % tax, bringing the total state-city liability to 14.7%.
Read the full article here