How hard is it to move from a LCOL area to a HCOL area?

[riverwed070707]

I feel like I posted this here before but can't seem to find it.

Anyway, anyone done it? What was your experience?

We've been talking for a while about getting out of the midwest and going to a bigger city. We're ready for a change of scenery, but the COL difference scares me. Jobs I've looked at in higher COL areas make pretty similar to what I make now -- with the COL difference I feel like I'd be taking a pay cut.

Coming from a small midwestern town, I'm also a little nervous about what we could afford in terms of housing/school districts. Moving a family is a lot different than moving when you're single or just starting out. I don't want my daughter's education to be compromised because of my selfish desire to get out and see what else is out there. On the other hand the cultural diversity and exposure is invaulable I think, and something that will never be replicated here.

If you made the leap, what were your biggest challenges? Worth it?

[MonkeyMama]

I think it probably depends how expensive the city is. Living in one of the most expensive cities in the nation, people moved there all the time not seeing what the big deal was, and most of the time they left pretty quickly. It's hard enough when you have lived there forever and know what you are getting into. The last office I worked in was a revolving door for out-of-towners. They all came in going on and on and on about the high wages, and quickly got pretty cranky about how expensive everything was. The high wages lost their allure very quickly.

That said, it did work for my parents. It was really hard and their mortgage was initially insane, but the job opportunities and investment opportunities were worth it for the long run. This is a case where they had to move for the jobs, though. So, I'd say if you can substantially improve your income it may be worth it, but otherwise not so much.

We personally made an opposite move, which has been so great for our finances. BUT, it was more of a high cost area move to a medium cost area move. So, basically, we still have most the perks and the same pay - just housing cost about 1/3. (We still live in a large metro area). Of course, I don't think people really understand that when a place is REALLY expensive, that everything is expensive. Not only rent and housing, but daycare, groceries and dining out. If people are paid more in general, then everything will cost more. Every store you and every service you buy has employees with high wages to support and owners with big bills to pay.

The plus side with bigger cities is there are simply more options all around. Forget buying a house for the school district. There will likely be several excellent public school options at your disposal.

That said, if you have the desire to move, you won't know until you try. I just think it will be a more successful move if you save up ahead of time and know what you are getting into. When you move somewhere it is really important to talk to people who live there and ask as many questions as possible, so you aren't blindsided.

[snshijuptr]

Sometimes you'd be surprised at the pockets of LCOL or MCOL in the middle of a bunch of HCOL. For example in San Diego (my once and hopefully future home), you can live in very HCOL areas like La Jolla, Hillcrest, or Downtown, or you can live in very nice LCOL/MCOL areas like Clairmont Mesa where most of the residents are the families of soldiers. Ask a relative or friend who lives in your target location or talk to a realtor about the neighborhoods and COL. I've also found that the police officers in my family are a great resource for quality of neighborhood. You could also try places like Craigslist to discuss moving into the area.

[LivingAlmostLarge]

But the HCOLA like SD also have better schools in higher COLA. Hence the tie in to specific neighborhoods costing more. Also SD in general is very expensive when you compare it to cities in the midwest even the "lower" COLA pockets.

I agree with MM that it's harder to go from lower to higher COLA. I dread that for us as well and we don't live in LCOLA, actually I'd say top 10 easily, probably top 5 if you listed cities. But we're moving up again in cost which makes me want to bang my head on the table.

But for jobs it's the best decision long term for us. My DH is going out to interview in another week. I'm stressing a little about it, happy to possibly be moving closer to family and friends and help. And we've lived out west before but also terrified at the cost.

[Gina23]

I feel like I posted this here before but can't seem to find it.

Anyway, anyone done it? What was your experience?

We've been talking for a while about getting out of the midwest and going to a bigger city. We're ready for a change of scenery, but the COL difference scares me. Jobs I've looked at in higher COL areas make pretty similar to what I make now -- with the COL difference I feel like I'd be taking a pay cut.

Coming from a small midwestern town, I'm also a little nervous about what we could afford in terms of housing/school districts. Moving a family is a lot different than moving when you're single or just starting out. I don't want my daughter's education to be compromised because of my selfish desire to get out and see what else is out there. On the other hand the cultural diversity and exposure is invaulable I think, and something that will never be replicated here.

If you made the leap, what were your biggest challenges? Worth it?

It's a shock... but a shock that's worth it in my opinion. As stated to you in another post... I am from Peoria, Illinois. I live in Denver, Colorado which has much much much higher COL than Central Illinois. The housing prices are a huge shock. Other than that, I have found that it's truly not that bad (strictly speaking for Denver).

[Gina23]

Another thing I wanted to add... real estate taxes in Illinois are OUTRAGEOUS. My brother and S-I-L pay over 6 grand a year in taxes in the Chicago burbs... my taxes in the city of Denver are 1633 a year. So... I think wherever you go - there you are, so to speak. You'll find it's more expensive in some aspects, but not others.

[adc0642]

I've not done it myself but have friends and family who have. And I'm considering it for the future.
The trick is to be willing to live 'smaller' than LCOL areas at the same pricepoint. i.e. if you have a 2,000ft house now, be willing to move into a 800sq ft condo, and decide to be happy about it. Good friend moved from a modest house in the burbs to a 400sq ft efficiency with a view in downtown Seattle and could not be happier. he's there for the amenities, not the sq ft.

your mileage may vary. Good luck! I suggest treat it like an adventure, go for it, worst it could be is a terrible mistake, from which you can probably recover anyway

[riverwed070707]

I've not done it myself but have friends and family who have. And I'm considering it for the future.
The trick is to be willing to live 'smaller' than LCOL areas at the same pricepoint. i.e. if you have a 2,000ft house now, be willing to move into a 800sq ft condo, and decide to be happy about it. Good friend moved from a modest house in the burbs to a 400sq ft efficiency with a view in downtown Seattle and could not be happier. he's there for the amenities, not the sq ft.

your mileage may vary. Good luck! I suggest treat it like an adventure, go for it, worst it could be is a terrible mistake, from which you can probably recover anyway

Ha so what does that mean for me if I'm already inhabiting 625 sq ft in a town where you can buy a house on multiple acres for $120,000?! Our family of 3 can't go smaller, I can tell you that much! lol

[thefrugallery]

I think it all depends on what kind of job you are going to get in the new place. If your pay increase is comparable to the cost of living increase, you wont' really feel much difference. Housing tends to be the largest cost, so if you can save up enough for a downpayment on a home when you move, perhaps you can keep your housing costs down by buying rather than renting. Or, if you are really concerned about it, get a roommate in the new locale. They can show you around and get you acclinated and they will save you money at the same time.

The Frugallery

[emanon1501]

Another thing I wanted to add... real estate taxes in Illinois are OUTRAGEOUS. My brother and S-I-L pay over 6 grand a year in taxes in the Chicago burbs... my taxes in the city of Denver are 1633 a year. So... I think wherever you go - there you are, so to speak. You'll find it's more expensive in some aspects, but not others.

I can vouch Gina23 for that. I own a house in Washington, IL, which is just outside of Peoria area. The tax for my 1,600 SQ feet house is just over 4,200. That is 350 a month. I would not move from LCOL to HCOL area with the same salary. In fact, in few years, I am planning on moving to a town here I can find higher salary and lower LCOL, Like Indianapolis, IN.

[riverwed070707]

I can vouch Gina23 for that. I own a house in Washington, IL, which is just outside of Peoria area. The tax for my 1,600 SQ feet house is just over 4,200. That is 350 a month. I would not move from LCOL to HCOL area with the same salary. In fact, in few years, I am planning on moving to a town here I can find higher salary and lower LCOL, Like Indianapolis, IN.

I agree, Illinois property taxes are outrageous and you don't even have to be near Chicago to feel the hit. I live right on the Iowa/Ill border and a LOT of people choose to live on the Iowa side purely for the property tax relief. THat coupled with gas being $.20/gallon cheaper and having cheaper cigarettes (not my cup of tea, but could be big savings for some)really makes it hard for Moline/Rock Island to fight for new buyers.

[elessar78]

We did the reverse actually, but we're still not sure we're going to settle in our LCOL area, so I've done thought exercises on how much it would cost us to move back to, specifically, the DC area.

Your overhead will just go through the roof. Our daycare and housing costs would just soar if we moved back. Activities for the kids would be expensive as well. For the most part, most expenses will stay within the ball park but you'll have a few that will just floor you.

I'd expect to try to double your income in the HCOL area just to avoid the sticker shock.

[DRILLINDK]

I feel like I posted this here before but can't seem to find it.

Anyway, anyone done it? What was your experience?

We've been talking for a while about getting out of the midwest and going to a bigger city. We're ready for a change of scenery, but the COL difference scares me. Jobs I've looked at in higher COL areas make pretty similar to what I make now -- with the COL difference I feel like I'd be taking a pay cut.

Coming from a small midwestern town, I'm also a little nervous about what we could afford in terms of housing/school districts. Moving a family is a lot different than moving when you're single or just starting out. I don't want my daughter's education to be compromised because of my selfish desire to get out and see what else is out there. On the other hand the cultural diversity and exposure is invaulable I think, and something that will never be replicated here.

If you made the leap, what were your biggest challenges? Worth it?

You from the QC?

[DRILLINDK]

You have to look beyond the "super" cities like NYC, Chicago, LA, etc. Like previous posters mentioned, moving to larger cities doesn't have to cost significantly more. I'm the Quad Cites, and just recently moved to St. Louis. Gas is actually on average about .20-.30 cheaper here. Rent is comparable.

[elessar78]

You have to look beyond the "super" cities like NYC, Chicago, LA, etc. Like previous posters mentioned, moving to larger cities doesn't have to cost significantly more. I'm the Quad Cites, and just recently moved to St. Louis. Gas is actually on average about .20-.30 cheaper here. Rent is comparable.

Yes, there are a lot of great "smaller" cities: Charleston (SC), Raleigh (NC), Denver, Colorado Springs, Portland, Seattle, Austin (TX), Athens (GA).

As I said, we live in a rural LCOL area. But I think you inspired me that down the road we do owe it to the kid to see something else. I grew up in the suburbs of a major city (hated it) but it's a diff. experience all unto itself.