As we enter the first homebuying season since the passage of sweeping tax reforms, Redfin agents across the country are meeting a wave of emigres from high-tax states. Many are looking for lower taxes and affordable home prices, but with everything else they love about their old city: walkable neighborhoods; racial and ethnic diversity; restaurants, bars and bicycle paths.
We’ve been asked so many times about such neighborhoods that we’re publishing a guide to affordable American cities. We list the cities where people are moving, arranged from highest tax rates to lowest, then the neighborhoods within those cities that are urban, walkable and affordable. We’ve estimated tax rates by county; however, tax rates can vary within a county and may be higher or lower than we’ve noted depending upon the neighborhood.
The reason we’re seeing so many people now asking us about these places is only driven in part by tax reform, which now limits deductions for state and local taxes to $10,000. This migration of people and businesses from expensive, high-tax cities like San Francisco and New York to affordable-housing markets began a few years earlier, when housing prices first began to rise much faster than wages.
It gained steam with Amazon’s search for a second headquarters, and the pressure many technology companies now feel on costs, especially around employee pay. In 2018 and 2019, many other businesses are going to start searching for lower-cost campuses to complement their presence in more expensive areas. We see this long-term shift to America’s emerging places as the U.S.’s most important demographic trend since the post-war suburban boom.
For each city, we include the neighborhoods our algorithms identified as walkable with their Walk ScoreⓇ in parentheses, highlighting in italics those with at least some single-family homes. We also solicited some of our best local agents to corroborate these algorithmic recommendations, and to recommend additional neighborhoods based on their personal experience. The neighborhoods recommended by Redfin’s local experts appear in bold, and a link for each agent makes it easy to email or call with questions.
We hope this helps the millions of Americans looking to move this year, especially the ones moving across the country!
Portland
Median Home Price
$375,000
State and Local Tax Rate
10.7%
Walkability
38.0% of neighborhoods have a Walk Score above 70
Diversity
78.2% of population is white, 21.8% of population is non-white
“Sellwood-Moreland sits on the east side of the Willamette River. The brand new Sellwood Bridge and the neighborhood’s easy access to the ‘Max’ light rail line make it a very convenient place to commute from. Sellwood is known for its small town feel, with ‘mom and pop’ stores, restaurants, coffee shops and pubs along 13th and Milwaukie Avenues. On weekends, residents ride bikes along the Willamette River Loop, picnic in Sellwood Park, and take the kids to Oaks Amusement Park.” – Gus Sanchez, Redfin Agent
“Downtown St. Paul offers a variety of cultural restaurants, food trucks and concert gatherings at Mears Park, and the State Capitol. The redeveloped Lowertown loft area is thriving with the new CHS field, a vibrant art and music scene and the very popular St. Paul Farmer’s Market. Uptown has one or two restaurants per block, great shopping and three nearby lakes!” – Kathryn Bausch, Redfin Agent
“Bucktown is much more expensive than the typical Chicago neighborhood, with most single-family homes above a million dollars, but it offers lots of shops, restaurants, bars, grocery stores and CTA and Metra (train) access. For your outdoor fix, you can easily get to the 606 (comparable to NYC’s highline) and other parks. It’s got highly rated public schools and is close to private school options as well.” – Niko Voutsinas, Redfin Agent
“Trinity Heights in Durham is close to most of the downtown attractions. In addition to its brewery scene, Trinity Heights is home to the baseball stadium and the Durham Public Arts Convention Center where there are always events going on. It’s also near the American Tobacco campus, which has some tech startups and small local shops. The neighborhood also isn’t far from Duke University, which adds to rental and resale potential.” – Matt Russell, Redfin Agent
“East Beach is a waterfront community where you’ll find beautifully crafted homes with deep, wrap-around porches. The streets are lined with oak tree-shaded sidewalks just steps from the Chesapeake Bay. Residents can walk to a few local restaurants and shops, including a farmer’s market, and the marina.” – Jordan Hammond, Redfin Agent
Photos of Ghent and Downtown Norfolk courtesy of Nyttend, Joey Sheely via Wikimedia Commons and Fuzzy Gerdes via Flickr.
Detroit
Median Home Price
$117,000
State and Local Tax Rate
7.4%
Walkability
12.7% of neighborhoods have a Walk Score above 70
Diversity
53.2% of population is white, 46.8% of population is non-white
“Main Street in Royal Oak is alive with different kinds of restaurants and bakeries ranging from American favorites to Asian-influenced cuisine. The area has plenty of entertainment options like piano bars, sports bars and breweries. There are also farmer’s markets and movie theaters for more family-oriented activities.” – Adam Rasor, Redfin Agent
“Inman Park, Virginia Highland and Little Five Points are very close to each other with connected sidewalks and access to the Atlanta Beltline walking path throughout the city. The Beltline has multiple parks off of it, like the Old Fourth Ward skatepark, as well as Ponce City Market and Krog Street Market. These three neighborhoods have tons of restaurants and are top notch for walkability in Atlanta.” – Victoria Hurd, Redfin Agent
“Some of the best restaurants, bars and coffee shops in Charlotte can be found in Plaza-Midwood, and they’re within walking distance of many homes! The neighborhood is in close proximity to the Lynx blue line extension, so getting around without having a driver is another perk of the area. Plaza-Midwood is also only 10 minutes away from Uptown Charlotte, a very popular area for nightlife and entertainment.” – Jennifer Roderick, Redfin Agent
Photos of Plaza-Midwood courtesy of James Willamor via Flickr.
Richmond
Median Home Price
$235,000
State and Local Tax Rate
6.9%
Walkability
16.7% of neighborhoods have a Walk Score above 70
Diversity
44.2% of population is white, 55.8% of population is non-white
“Scott’s Addition is a cool urban neighborhood where residents can walk to breweries and amazing restaurants. Historically, it’s a commercial area that now has a mix of retail and single family homes as well as condos.” – Jennifer Coppock, Redfin Agent
Photos of The Fan and Monroe Ward courtesy of Taber Andrew Bain via Flickr.
Salt Lake City
Median Home Price
$295,000
State and Local Tax Rate
6.7%
Walkability
7.1% of neighborhoods have a Walk Score above 70
Diversity
81.1% of population is white, 18.9% of population is non-white
“Sugar House is an eclectic community that offers small-town quaintness with lots of local shops, cafes, a farmer’s market and several parks. The hottest spots within Sugar House include the 9th & 9th, 15th & 15th and Harvard/Yale neighborhoods. For transplants, the best aspect of living in Sugar House is probably its convenience, with the S Line, city bus and the freeway all nearby.” – Sabrina Peters, Redfin Agent
“Berkeley has tons of its own bars and restaurants to walk to, and it’s convenient to I-70 and Berkeley Park and Berkeley Lake.” – Graeme Nistler, Redfin Agent
Photos of LoHi courtesy Mobyll and Gtj82 via Wikimedia Commons.
Vancouver (WA)
Median Home Price
$334,000
State and Local Tax Rate
5.8%
Walkability
7.4% of neighborhoods have a Walk Score above 70
Diversity
84.6% of population is white, 15.4% of population is non-white
“Fisher’s Landing is among Vancouver’s most sought-after areas for its highly-rated schools, single-family home communities within walking distance to grocery stores, and its Park and Ride station with easy access to Portland by bus.” – Rebecca Thompson, Redfin Agent
Photos of Downtown Vancouver and Esther Short courtesy of Ian Poellet and Cory Barnes via Wikimedia Commons.
San Antonio
Median Home Price
$200,000
State and Local Tax Rate
5.0%
Walkability
2.4% of neighborhoods have a Walk Score above 70
Diversity
78.4% of population is white, 21.6% of population is non-white
“King William has a lot of character, with its historic homes and access to local shops, restaurants and brewpubs as well as biking trails.”- Jim Seifert, Redfin Agent
“Zilker has highly-rated schools, along with close proximity to South Lamar. It is walkable to day-to-day needs and there are lots of new developments with dining, shopping and entertainment. It is walkable to Zilker Park, and a very short drive into downtown Austin.” – Andrew Vallejo, Redfin Agent
“Greater Heights has a lot of shops and restaurants for people to enjoy, as well as highly-rated schools. People love Donovan Park, and the hike and bike trails are very popular. You’ll often find that during the weekends the amount of bikers and walkers is on scale with the the number of cars driving around the neighborhood.” – Lee Rusk, Redfin Agent
“Downtown/Brickell is a perfect option for folks looking for affordability and walkability. Downtown/Brickell is modeled after NYC, incorporating a live, work and play lifestyle. It offers parks, museums, an opera house, shopping, sporting events, nightlife, lots of restaurants and public transportation, which now includes a brand new high-speed rail service called Brightline. It’s also relatively close to the beach, which makes this location very strategic for someone looking for a more balanced Miami lifestyle. Finally, the Downtown/Brickell condo market is correcting, giving these buyer’s plenty of leverage to strike the right deal.” – Jose Medina, Redfin Agent
Photos of Brickell, Wynwood and Little Havana courtesy of Phillip Pessar via Flickr.
Seattle
Median Home Price
$600,000
State and Local Tax Rate
4.3%
Walkability
21.0% of neighborhoods have a Walk Score above 70
Diversity
67.2% of population is white, 32.8% of population is non-white
“Columbia City has lots of local restaurants and shops and access to nearby parks, including Seward Park, Jefferson Park and Genesee Park. The light rail station makes it fast and easy to get downtown.” – Matthew Brennan, Redfin Agent
Photos of Columbia City courtesy of Joe Mabel and Mattgrundy, via Wikimedia Commons.
Dallas
Median Home Price
$239,000
State and Local Tax Rate
4.3%
Walkability
3.6% of neighborhoods have a Walk Score above 70
Diversity
60.8% of population is white, 39.2% of population is non-white
“Lakewood Heights is a trendy area with its own culture. It has a historic feel with older homes that have been completely remodeled. It has decent walkability, hosting a brewery and a theater that offers lots of different entertainment options. It’s close to White Rock Lake and trails. Another selling point for buyers are the highly-rated elementary schools.” – Erin Birdsong, Redfin Agent
Photos of Lakewood Heights by W3stfa11, Jim Rain via Wikimedia Commons.
Tampa
Median Home Price
$220,000
State and Local Tax Rate
3.9%
Walkability
16.1% of neighborhoods have a Walk Score above 70
Diversity
71.1% of population is white, 28.9% of population is non-white
“Hyde Park is close to Bayshore Boulevard, which is a big area for walking and jogging along the bay. Residents are within a few blocks of boutiques, restaurants and the CineBistro, a restaurant/movie theater, in the Hyde Park Village.” – Ed Fusco, Redfin Agent
“Franklin has been a popular community for years and years due to it’s historic homes, quaint downtown and highly-rated schools. It has a historic dine-in theater and cute antique stores. It is an active community that hosts a lot of music festivals and parades.” – Jerry Diaz, Redfin Agent
Photos of Franklin courtesy of Ron Cogswell via Flickr and Bbbrandon via Wikimedia Commons.
Orlando
Median Home Price
$251,000
State and Local Tax Rate
3.7%
Walkability
8.7% of neighborhoods have a Walk Score above 70
Diversity
64.3% of population is white, 35.7% of population is non-white
“Baldwin Park checks all the boxes with highly rated schools, parks and trails for outdoor exercise, restaurants and stores within walking distance and lots of community events to get to know your neighbors.” – MaryDell Penney, Redfin Agent
Photos of South Eola and Baldwin Park courtesy of Visitor7 via Wikimedia commons Brett VA via Flickr.
Data Sources
All data is provided at the county level. The median sale price is from December 2017. Population diversity data came from the American Community Survey 2016 (5-Year Estimates). Political affiliation data was pulled from Townhall.com based on the 2016 election results. The state and local tax burden is calculated from 2015 IRS county filings. Redfin estimated total tax burden by summing state and local income and sales and property taxes paid, divided by the number of itemized returns. Tax rate was calculated from total tax burden divided by adjusted gross income by county. Please note tax rates can vary within a county.
Glenn is the CEO of Redfin. Prior to joining Redfin, he was a co-founder of Plumtree Software, a Sequoia-backed, publicly traded company that created the enterprise portal software market. In his seven years at Plumtree, Glenn at different times led engineering, marketing, product management, and business development; he also was responsible for financing and general operations in Plumtree's early days. Prior to starting Plumtree, Glenn worked as one of the first employees at Stanford Technology Group, a Sequoia-backed start-up acquired by IBM. Glenn was raised in Seattle and graduated from the University of California, Berkeley. He is a regular contributor to the Redfin blog and Twitter.
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