The marble lobbies still shine and the doormen still wear white gloves on a chilly afternoon along Central Park South. Manhattan’s opulent skyscrapers don’t evoke a sense of retreat. Brokers, however, speak in low tones about listings sitting longer, price reductions negotiated in back rooms, and clients discreetly inquiring about rentals in the Dallas suburbs rather than the Hamptons. It’s not a panic. More like a gradual loosening.
Rich people have been moving to low-tax states like Florida, Texas, and others in recent years. The justifications seem more pragmatic than ideological. While Texas does not collect state income tax, top earners in New York may be subject to a combined state and city tax burden of over 16 percent. The annual difference alone can be close to six figures for an executive making $900,000. And it’s hard to ignore the math.
| Category | Details |
|---|---|
| Market Focus | New York City Luxury Real Estate |
| Median Luxury Property Price (NYC) | Often $5M+ depending on borough and property type |
| Migration Trend | High-net-worth residents relocating to Texas & Florida |
| Key Drivers | Taxes, cost of living, business relocation, lifestyle shifts |
| Major Financial Firms Expanding in Texas | Charles Schwab, JPMorgan Chase, Goldman Sachs, Wells Fargo |
| Texas Median Home Price (Dallas) | ~$405,000 |
| Austin Median Home Price | ~$455,000 |
| Tax Advantage | Texas has no state income tax |
| Workforce Shift | Finance, tech, and private equity talent relocating |
| Reference | https://www.realtor.com/news |
Large financial institutions have been growing their operations throughout Texas at the same time. Charles Schwab and Wells Fargo are still expanding their regional hubs, while Goldman Sachs and JPMorgan Chase have established significant presences in Dallas. Brandon Dock, an executive recruiter, reports that more and more calls start with the phrase “We’re building this in Dallas now.” The work is moving, and talent tends to follow.
Perhaps the migration is more about recalibrating values than it is about fleeing New York. When moving from Manhattan to Dallas, a managing director can exchange a co-op with stringent board regulations for a gated community home with a three-car garage, a pool, and a short commute. The change feels more like increasing one’s breathing room than it does like downsizing.
Cities in Texas are rapidly adapting. Homes priced between about $400,000 and $800,000 are in high demand in Dallas-Fort Worth, where new professionals with families look for homes with good schools and manageable commutes. Buyers arrive with spreadsheets comparing square footage, property taxes, and travel times to major airports, according to real estate agents. They’re not searching for deals. What they seek is stability.
Austin’s story is a little different. Tech-related finance jobs are still coming in, and the skyline cranes are still swinging overhead. The number of households in the city has increased by more than 50% in the last ten years. Wealth advisors moving from California and New York talk about peaceful neighborhoods, sunset views, and deer wandering close to backyards. The imagery is almost cliche, but it works.
The luxury market in New York is still thriving. Rather, it feels more selective and tight. Because there is still a shortage of high-end real estate, it still sells quickly. Another buyer takes over when a wealthy owner leaves. This volatility can mask a more significant change: despite an increase in the overall number of millionaires, New York’s proportion of the country’s millionaire population has decreased over the last ten years.
Additionally, there is a political component that permeates discussions. There are still proposals to increase taxes on high earners, which proponents frame as fairness measures and detractors frame as warning signs. According to some progressive organizations, wealthy people rarely relocate purely for tax purposes. However, according to IRS migration data, wealthy residents are moving to Texas and Florida while high-tax states lose them. The truth most likely lies in the middle of personal calculus and ideology.
The lights in Billionaires’ Row flicker in erratic patterns as one walks through it at dusk. Some apartments, which are owned by foreign investors or temporary residents, are dark for months at a time. Others exude warmth, implying dinner gatherings and unaltered routines. As this is happening, it seems like New York is renegotiating its position in the lives of its wealthy rather than losing them.
Dallas and Austin, on the other hand, offer not only affordability but also accessibility: central time zone trading hours, growing financial ecosystems, and family-friendly neighborhoods that prioritize family life over status flaunting. While candidates increasingly demand salaries comparable to those on the coast, recruiters say employers still hope to pay “Texas prices.” The impasse implies that the Lone Star economy is developing into a more intricate system.
It’s still unclear if the change will merely rebalance Manhattan’s opulent skyline or alter it permanently. Exodus have been experienced by New York before, from the financial crisis of the 1970s to the post-9/11 lull. However, the current movement seems more subdued and data-driven, with spreadsheets serving as its guides rather than emotion.
The skyline hasn’t changed, and the marble lobbies are still immaculate. However, a former New Yorker is unpacking boxes, comparing property tax bills, and wondering why the sky feels so big all of a sudden somewhere in a Dallas subdivision at sunset.
