Seniors Flocking to Low-Tax States Like Nevada

Nevada pic
Nevada
Image: 55places.com

Thomas Jurbala received a bachelor of science in marketing from Purdue University and later earned his MBA from Loyola Marymount University. Currently based in Las Vegas, Nevada, Thomas Jurbala has nearly 20 years of experience in managing development projects from the ground up, including senior housing facilities, hotels, and condominiums.

As of 2016, Nevada has the eighth lowest property tax rate in the United States. While trends suggest young people are moving to states in the Northeast and Midwest with high property tax rates, the value of homes in those states have not risen as rapidly as those in low-tax states. New Jersey, for example, leads the nation with an average annual tax bill of $8,477, but the state’s average home value has only risen five percent in the recent national housing recovery effort. In comparison, Colorado has seen home values increase by 59 percent, all the while maintaining the nation’s third lowest property tax rate.

Markets in the West and Southeast with lower property taxes are luring more buyers. In particular, senior housing has become a lucrative market in Nevada. United Van Lines’ 2016 National Movers Study found that approximately 32 percent of the people surveyed cited retirement benefits as the main reason for their move to the state, whereas only 20 percent of movers cited the lifestyle benefits. Consequently, over 57 percent of the people who moved to Nevada in 2016 were over 55 years old. Overall, Nevada was the ninth-ranked state for inbound moves.