High property taxes, expensive housing and rising everyday costs can quietly drain wealth in many East Coast states.
Even strong incomes can struggle to keep up when so much goes toward staying put. For those open to relocating, some states offer a better equation: Lower taxes, cheaper housing and more room to save and invest.
Here are six more affordable states for East Coasters to grow wealth.
North Carolina
North Carolina gives East Coast residents a way to slow the financial drain without radically changing their lifestyle.
While the state’s overall cost of living is 4% lower than the national average, per RentCafe, housing prices and property taxes are significantly lower than in Northeastern states like New York, New Jersey, and Massachusetts.
That gap means a smaller share of income goes toward housing and taxes, leaving more room for saving, investing and building equity. Continued population growth also supports job availability and long-term housing demand, reinforcing wealth-building potential.
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Georgia
Georgia gives East Coast residents access to large job markets without some of the region’s highest housing costs.
According to Realtor.com, median asking rents in the Atlanta area remain lower than in several major East Coast metros, including New York-New Jersey, Boston, Philadelphia, and Baltimore, even if they are not the lowest nationally.
That relative rent gap allows residents to redirect money that would otherwise go toward housing into savings, investments or home equity, while still benefiting from metro-level employment opportunities.
Tennessee
Tennessee makes wealth-building possible by letting residents keep more of what they earn.
The state has no personal income tax, which immediately boosts take-home pay compared to most East Coast states. Housing costs are also well below Northeastern levels, and overall living expenses remain moderate.
Combined with strong in-migration and job growth, that lower tax burden and cheaper housing leave more income available for saving, investing, and building long-term equity.
Florida
Florida allows East Coast residents to grow wealth by eliminating one of the biggest ongoing drains on income: State income tax.
With no personal income tax, more earnings stay available for saving and investing year after year. While housing costs vary widely by metro, many parts of the state remain more affordable than Northeastern markets.
Strong population growth and sustained housing demand also support long-term property values, reinforcing Florida’s appeal as a wealth-retention state.
Texas
Texas supports wealth-building through a tax structure that favors long-term asset accumulation rather than income taxation. While the state does not levy a personal income tax, its appeal goes beyond that: Texas also has no estate or inheritance tax, which can matter for long-term wealth transfer.
Although Texas relies more heavily on property and sales taxes than some states, its overall tax structure remains competitive compared with other large state economies, helping offset those costs for residents with strong earning potential.
Colorado
Colorado supports wealth-building through higher earning potential and a strong labor market, rather than low taxes or cheap housing.
The state’s labor force participation rate consistently exceeds the national average, reflecting a highly engaged workforce and steady employment demand. Average hourly earnings in Colorado also run above U.S. norms, helping residents grow income faster over time.
That combination makes Colorado attractive for East Coast residents focused on long-term earning power rather than cost-cutting alone.
Final Take To GO
High housing costs, rising taxes and everyday expenses can quietly erode wealth over time, even for high earners.
For many East Coast residents, growing wealth isn’t about working harder, but choosing a place where income goes further. Whether through lower fixed costs, higher take-home pay or stronger job markets, these states offer paths to build savings and equity without the constant financial drag.
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This article originally appeared on GOBankingRates.com: Is Your East Coast State Quietly Draining Your Wealth? 6 More Affordable States for East Coasters To Grow Wealth
