The main financial factors, after rent and mortgage, to consider when moving

Whether you’re packing up in hopes of moving to a major metropolitan area, sunny coast, the heartland or abroad, there’s a lot to consider when finding a new place to call home. 

Consider everything you pay for now — transportation, groceries, utilities and entertainment, for instance — and how the price tags on those goods and services could change when you relocate. Housing costs are typically top mind, but they’re not the only thing you should factor into your budget. 

“When people move, they usually obsess over the rent or the mortgage, but that’s only part of the equation,” says Gabriel Shahin, a certified financial planner and the founder and CEO at Falcon Wealth. “We spend a lot of time helping clients look at the full financial picture, because the real impact of a move usually comes from the things people don’t think about.” 

If you want to understand how relocating affects your net worth, you have to look at the hidden costs that quietly change how far your income actually goes, he adds. Here are four costs to consider when moving, other than rent or mortgage. 

1. Taxes 

If you’re moving to a different state, it’s crucial to consider taxes, including sales taxes, property taxes, income taxes and estate or inheritance taxes, says Anthony Ferraiolo, a certified financial planner and partner advisor with AdvicePeriod. That’s because the way one state taxes certain aspects of your finances will vary greatly from another. 

For example, while Tennessee has no state income taxes, it has the second-highest combined state and local sales tax rate at nearly 10%. Similarly, states like Florida and Texas have no income taxes, but Texas ranks in the top 10 of states with the highest property taxes and homeowners are likely to face high home insurance premiums in Florida, Ferraiolo explains. 

2. Transportation 

Transportation is a big factor people underestimate, Shahin says. 

“If you move somewhere without strong public transit, you’re probably adding a car payment, insurance, gas, maintenance and parking to your monthly budget,” he adds. “Sometimes it even means owning two cars.” 

He asks clients to consider factors like their daily commute, and how it can quietly become a long-term wealth drain over five or ten years. 

To help save costs (and get some fresh air and exercise) you can also consider the walkability of the location. If you do, you’re not alone: 60% of homebuyers and prospective buyers recently surveyed by Zillow said that walkability was “very or extremely" important to them when looking for a new home. Meanwhile, 53% of respondents said the same about being close to shopping, services and/or leisure activities, and nearly half (49%) said the same about their commute to work or school. 

If you plan to travel by airplane, you should also consider the proximity your new home would have to major airports. “If you travel frequently for work or to visit family, living near a major airport can save both time and money because you’ll have more flight options and competitive pricing,” Shahin says. 

An analysis by AAA of government data shows that average fares from Ronald Reagan Washington National Airport in Washington D.C. were $105 less on average than those from the 30-minute-drive-away Washington Dulles International Airport, illustrating how living near a major metropolitan city offers more options for flyers. 

3. Utilities and insurance

Utilities and insurance are more variable than people expect, Shahin says. 

“Energy costs can swing significantly depending on the climate, and insurance premiums — both auto and home — can jump just based on location,” he adds. “In some cases, we’ve seen costs double simply by crossing a county line.” 

For example, in 2024 customers in Hawaii and Connecticut paid more than $200 per month for electricity, which is twice as much as people in states such as New Mexico and Utah, according to data from the U.S. Energy Information Administration. 

Redfin recommends asking your real estate agent for an estimate, or going straight to the utility providers, which can typically give you an average monthly cost for a specific address based on the past year.  

Ferraiolo says many people are also surprised by their car insurance when moving. Moving from a state like Montana to Maryland can result in an insurance premium increase of nearly double: The average annual cost of car insurance is $2,299 in Montana and $4,228 in Maryland, according to Experian. 

4. General cost of living 

Shahin says the biggest mistake people make when relocating is assuming their lifestyle will cost the same somewhere else. 

“Most of the time it doesn’t,” he says. “The surrounding costs of living, and how those costs are taxed, are what really change the math.” 

Do some research. Websites such as Nerdwallet and Bankrate have cost of living calculators you can use to compare the costs where you’re currently living to where you’re considering a move. For instance, according to Nerdwallet’s calculator, if you currently live in Dallas with a $70,000 pre-tax household income and are moving to San Francisco, you’ll need a household income of $113,803.25 to maintain the same standard of living since the cost of living is 63% higher.  

“You can’t manage what you don’t measure,” Shahin says. “A move should be a strategic decision that supports your long-term wealth, not something that quietly drains it over time.” 

If you’re moving to a more expensive place, saving is key — and it’s best to do so in a high-yield saving account so your money is growing regularly. With Current, for instance, you can earn up to a 4.00% bonus on money in your Savings Pods. You can also create up to three Savings Pods, each designated for a specific saving purpose such as “Moving” and transfer money seamlessly - and without limits - from your spending balance to your designated pods.