Wyoming’s tax policies are a boon for wealthy homebuyers.
The state’s lack of an income tax and the permissibility of dynasty trusts have provided significant appeal to residents and homebuyers with deep pockets over the years, Realtor.com reported.
A dynasty trust “facilitates the transfer of wealth to future generations while minimizing taxes” for the future recipients of the wealth and can therefore help “enable long-term wealth growth,” according to U.S. Bank.
Other states such as South Dakota, Nevada and Delaware also have favorable terms for dynasty trusts.
Latham Jenkins of real estate firm Live Water Jackson Hole told Realtor.com that Wyoming “is the most tax-friendly state.”
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“Retirement benefits are not taxed at the state level, and it’s one of the most business-business-friendly states in the nation,” he added.
Homes on the market in Wyoming had a median price of $495,000 in May but the state was still home to properties with asking prices well-above that, according to Realtor.com.
The real estate marketplace pegged the median asking price of Teton County, the county that encompasses Jackson Hole and parts of the Grand Teton and Yellowstone National Parks, at $2.95 million. Of the nearly 70 properties for sale in the county in May, 57 had an asking price of over $5 million.
Wyoming overall had a larger proportion of properties on the market upwards of $5 million last month than the neighboring states of Idaho and Montana, with about 3% of the state’s 2,200 for-sale homes carrying a $5 million-plus price tag, per Realtor.com.
The real estate marketplace reported Wyoming has seen a difference in buyers and sellers when it comes to properties with asking prices above $10 million and those seeking $1 million.
Those shopping for homes above $10 million have a higher propensity for strategic home acquisitions that they intend to hold onto thanks to the state’s tax advantages and using cash for their transactions, according to Realtor.com. Sellers in that category also reportedly tend to not have mortgages and be patient about offloading their properties.
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Mortgages are more common among owners of homes less than $10 million.
The median number days a Wyoming home asking at least $5 million remained up for grabs was higher than Idaho and Montana, coming in at 187, according to Realtor.com.
“People are more bullish in their prices, and more confident,” Prugh Real Estate broker Margi Barrie said to Realtor.com. “A lot of people aren’t leveraged on their property so that they can sell them, or not.”
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Jackson Hole saw 15 sales of homes above $10 million over the course of 2024, according to a report from Compass.
More than 587,600 people called Wyoming home as of July 2024, per the U.S. Census Bureau.
Original article source: Wyoming’s secret weapon in the battle for wealthy homebuyers is working
