Here’s a Simple Solution to the Affordability Crisis: Move to a Red State.

For most young people, the ever-rising cost of housing, groceries, health care, childcare, and more is untenable. According to a new poll conducted by Rasmussen Reports and The Heartland Institute, nearly three out of four likely voters under age 39-years-old think the cost of housing is at a “crisis level,” and only 22 percent think their economic future will be better than their parents.

Those are startling statistics that demonstrate how deep the sense of economic hopelessness is among millions of young Americans.

In some places, like New York City and Seattle, young voters recently elected socialist mayors to address the cost-of-living crisis that is particularly acute in those urban enclaves. Unfortunately, as history has shown time and time again, socialist policies will make the situation worse, not better.

It is important to remember that the United States does not have a monolithic economy. Thanks to the principle of federalism, it is more accurate to say that the United States has 50 micro-economies.

For instance, the economic landscape in California is far different in Florida.

On an apples-to-apples comparison, it is much more affordable to live in the Sunshine State than it is to reside in the Golden State.

Overall, the cost of living in Florida is about 15 percent cheaper than in California. Specifically, restaurant meals are 5.7 percent less, groceries are 7.7 percent less, transportation is 14.1 percent less, housing is 12.9 percent less, childcare is 39.4 percent less, entertainment and sports are 20.8 percent less, and clothing is 4.8 percent less.

How about New York and Texas? The cost of living in the Lone Star State is 12.6 percent less than in the Empire State. In Texas, restaurant meals are 1.6 percent less, groceries are 18.7 percent less, transportation is 15.4 percent less, housing is 7.4 percent less, childcare is 26.9 percent less, and entertainment and sports are 20.2 percent less.

The cost of living in New Jersey is 16.5 percent more expensive than in Tennessee. If you choose to live in Virginia, you’re paying 20.9 percent more in cost-of-living than in South Dakota. In Massachusetts, the bare necessities are 10.9 percent more expensive than in Wyoming.

No matter how you slice it, red states are generally more affordable than blue states strictly on a cost-of-living basis. But that is only part of the story.

In blue states like California, New York, New Jersey, and many more, residents pay high income tax rates.

DIVE DEEPER: NY, NJ Lose $690B As Residents Flee High Taxes

In California, the top marginal income tax rate is 13.3 percent. In New York, it is 10.9 percent. In New Jersey, it is 10.75 percent.

On the other hand, red states like Florida, South Dakota, Texas, Tennessee, and Wyoming have no state income taxes. That is a huge boon to residents of those states, who don’t pay a single penny in state income taxes.

If you earn $100,000 in California, your after-tax income is: $73,409. In New York, it’s $73,784. In Oregon, it’s only $70,540.

In income-tax-free states like Florida, South Dakota, Texas, Tennessee, or Wyoming, your after-tax income is nearly $5,000 higher ($78,736).

Lastly, the cost of energy in terms of electricity and gasoline tends to be significantly higher in blue states.

In Florida, the average cost of a gallon of gasoline is $2.92. In Texas, it’s only $2.68. In California, it’s $4.66. In Illinois, it’s $3.24.

Although it is not possible for everyone to instantly move to another state, it is surely an idea worth exploring.

With remote work being a viable option for many young people, the need to live near your employer is not necessarily essential anymore. In 2024, more than 25 percent of workers aged 25-54 worked remotely, including 43.6 percent of those with advanced degrees.

So, if you live in an expensive blue state and want a more affordable lifestyle, don’t vote for a stupid socialist. Just move to a red state and laugh all the way to the bank.

Chris Talgo ([email protected]) is editorial director at The Heartland Institute.

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