Cost of Living Considerations as a Remote Worker
Should I Move Somewhere Cheaper After Becoming a Remote Worker?
With the growing popularity of remote work, many people are learning that their dream job is not tied to a specific location. For some, paying the high rent in the city where their company is located doesn't make sense anymore.
While moving to a place with a lower cost of living can be a great choice, it is not one you should make simply because you work remotely now. Many factors go into making someplace a great place to live. It is important that you consider your desired lifestyle, the effect the move would have on your job, and the moving costs on top of the cost of living.
Reasons You May Want to Move
Moving to a new place is not always a simple decision. Many people move for new job opportunities, but with the rise of remote work, people can move for reasons beyond their professional careers.
Your desire to move could be fueled by a need to be closer to family, a desire to live in a place that better reflects the lifestyle you want, or simply a drive to save money on your cost of living.
Lifestyle
Not every place is for every person. Each city and town has its strengths and weaknesses, and these are important to address when looking for a new home. If you are looking to move for lifestyle reasons, you might want to consider what your lifestyle goals are.
Do you want to live in a rural town or a big city? Do you want to have access to public transportation? What kinds of activities and nightlife do you enjoy? Does the politics of a place influence your decision?
Identifying what your lifestyle needs are can help you to find the perfect place to call home. For example, if you are a part of the LGBTQ+ community and moving to an LGBTQ+ friendly city, you might want to move to a city with housing and employment protections, LGBTQ+ friendly activities, and a large population of LGBTQ+ folks.
Family
Another reason to move is to be closer to your family. You might want to live in the same town as your family or even live in the same house as several generations of your family. If you are a remote worker and you are looking to save money, living near or with family can help you save money on costs like rent and childcare.
Remote work allows you to have a great job (one that might not be available where your family lives) while also still being able to develop deeper relationships and form memories with your loved ones.
Cost of Living
If you are living in a large, expensive city, you might be wondering if you should move to save money. There was roughly a 5% increase in people searching for homes in other towns between 2019 and 2021, and cities like New York, Los Angeles, and San Francisco are leading the way in terms of net outflow.
In short, more and more people are considering moving out of larger cities and enjoying the low cost of living in Raleigh and smaller cities.
Moving Costs vs. Cost of Living
While moving to a new place might save you money over time due to the lower cost of living, it is important to keep in mind the high upfront costs associated with moving. If you are renting, you may need to pay a fee for leaving your apartment before your lease is done. If you own a home, you have to handle all of the selling costs associated with putting your home on the market.
You'll also need to pay for moving equipment and possibly hire movers to help you pack and transport your belongings. When you find a new place, you'll need to put down a deposit. All of these costs can add up quickly and cause trouble for a person if there are not sufficient funds to cover them.
However, there are some great ways to make money and save money when moving. One viable option is listing a spare room on Airbnb to make some extra cash. This option allows you to make money from a room you aren't even really using, and it allows you to meet new and interesting people.
Considerations for Remote Workers When Moving
If you are a remote worker who is moving out of town, there are several things you should consider before you take the leap:
State-to-State Taxes
Taxes can become more complicated when you live in a different state than the one where your company operates. You'll need to understand the residency requirements of your new home state, and according to the IRS, you'll need to establish if your out-of-state or remote work is for the "convenience of the employer/employee'.
The Convenience of the Employer rule requires you to establish. whether your remote work (completed out of state) is for your convenience or the necessity of the employer.
This rule can mean double taxation for an employee who has established a home office outside of the state where their employer conducts business.
If you are struggling to understand how to file your taxes as an out-of-town remote worker, don't be afraid to conduct your research on the IRS website or consult with a tax professional.
Labor Laws
Labor laws are different depending on the state you live in. It is important that you learn as much as you can about the labor laws where you live and the labor laws where your company operates to avoid any logistical problems.
For example, if you are moving to California to enjoy a more temperate climate, you need to be aware of that state's differing laws in terms of overtime.
Work Culture
If work culture is important to you, then you may need to reconsider moving out of town or out of state. Leaving the area and working fully remotely means that you will miss out on most employee events and fun activities that your workplace might host.
It is important to note that as remote working becomes more popular, many workplaces are including virtual events in their company culture. So depending on your company, you might still be able to enjoy happy hour with your coworkers, even if you've moved a few states away.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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