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Cheap Mortgages Deter Workers from Relocating for $250k Jobs

bloomberg.com

11–20 of 31 posts

Re: Cheap Mortgages Deter Workers from Relocating for $250k Jobs

#11
post #5

Is it just mortgage rates or is it that moving down to the southern United States is not all that appealing for other reasons? There is clearly an amount of money that would convince me to move to "the US south" but as of yet nobody has offered it. There is a significant quality of life and sanity cost that I would prefer to not incur.

As somebody who lives in the US South, this is spot on. I doubt I would choose to move here. Definitely not for a pay cut as the article implies.

Re: Cheap Mortgages Deter Workers from Relocating for $250k Jobs

#12
post #5

Is it just mortgage rates or is it that moving down to the southern United States is not all that appealing for other reasons? There is clearly an amount of money that would convince me to move to "the US south" but as of yet nobody has offered it. There is a significant quality of life and sanity cost that I would prefer to not incur.

It's hard to quantify, but as someone who grew up in the south and left, the "unappeal" is definitely apart of the calculus.

Not only do the outdoor activities pale in comparison to what you get in other parts of the country, but additionally so much of the political rhetoric, attitude, and actions isn't just "I want myself, my family, and my neighbors to do well" but "I want other people to suffer."

It's truly a terrible micro-society within the U.S.

Like anywhere, there are of course tons of nice/great people and some nice places. But exceptions, rules, etc.

Re: Cheap Mortgages Deter Workers from Relocating for $250k Jobs

#13
post #5

Is it just mortgage rates or is it that moving down to the southern United States is not all that appealing for other reasons? There is clearly an amount of money that would convince me to move to "the US south" but as of yet nobody has offered it. There is a significant quality of life and sanity cost that I would prefer to not incur.

The south has above average inmigration, and below average outmigration.

So, probably you and your peers like you would never move there, but a ton of people are moving there:

https://www.census.gov/library/stories/2023/11/state-to-stat...

Re: Cheap Mortgages Deter Workers from Relocating for $250k Jobs

#14
post #9

Am I missing something or did the writer just drop this line in the middle of the article with no context: > But salaries in Michigan for all manager roles are typically around 15% to 20% higher than for comparable roles in the south, she said. Why on earth would anyone move for a job paying 20% less, regardless of their mortgage status?

If taxes and CoL end up being more than 20% less, then it can be profitable to move.

Re: Cheap Mortgages Deter Workers from Relocating for $250k Jobs

#15
post #9

Am I missing something or did the writer just drop this line in the middle of the article with no context: > But salaries in Michigan for all manager roles are typically around 15% to 20% higher than for comparable roles in the south, she said. Why on earth would anyone move for a job paying 20% less, regardless of their mortgage status?

The article was written by the writer then edited and titled by the bosses at Bloomberg.

Re: Cheap Mortgages Deter Workers from Relocating for $250k Jobs

#16
post #9

Am I missing something or did the writer just drop this line in the middle of the article with no context: > But salaries in Michigan for all manager roles are typically around 15% to 20% higher than for comparable roles in the south, she said. Why on earth would anyone move for a job paying 20% less, regardless of their mortgage status?

I'm in the south, and not sure I'd want to move back north for 15% more, and... I'm 'stuck' with a cheap mortgage. I don't like cold weather. My wife doesn't mind it. I'd go back for a lot more, but 15% ain't tempting enough.

Re: Cheap Mortgages Deter Workers from Relocating for $250k Jobs

#17
post #9

Am I missing something or did the writer just drop this line in the middle of the article with no context: > But salaries in Michigan for all manager roles are typically around 15% to 20% higher than for comparable roles in the south, she said. Why on earth would anyone move for a job paying 20% less, regardless of their mortgage status?

If taxes and CoL end up being more than 20% less, then it can be profitable to move.

They would have to be much more than 20% less. Taxes and living costs are typically far lower than income for the types of jobs that people would consider moving for. 20% higher income is 20% more of a larger number than the 20% higher costs, making it more profitable to live in the high cost of living area.

Re: Cheap Mortgages Deter Workers from Relocating for $250k Jobs

#19

So offer then higher salaries to offset the costs of moving there? What exactly is the problem?

These are already high salaries, and they're still not enough. And that's a good thing. These companies need to pay the true price for talent, which is much higher than what they're paying but also they've done a lot of dirty tricks to grow as big as they are; the real price for what they're asking should bleed them dry.

No, the northern states need to raise their mortgages so the southern states can keep their salaries low!
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