How South Carolina Has Made A Big Comeback

South Carolina, like so many other states that are as old as it is, has a long and storied history full of ups and downs. It's gone from an economic powerhouse, to a state struggling through economic difficulties, and back again multiple times. South Carolina has changed along with the American economy on the whole, really. When America was a major provider of agricultural-related goods, South Carolina was a leading source of that growth. But as businesses moved north and manufacturing and finance became the dominant drivers of the American economy in the early 1900s and mid to late 1900s respectively.

But all that has been changing over the past fifteen years or so. People are moving south in larger and larger droves. The financial press is dubbing this phenomenon "The New South" due to the influx of non-native southerners to the region and the new businesses springing up, breathing new life into states like South Carolina. So, what does South Carolina's comeback look like and how did it happen? Here are a few of the big reasons.

Return of manufacturing

The biggest reason that South Carolina has seen a renaissance is the return of manufacturing to America, specifically in the south. Many executives of some of the largest companies in the world have decided the time is right to start producing at least some of their products in America again thanks to more competitive labor costs, consumer demand, and a reduction in transportation costs. A good portion of these jobs have reappeared in South Carolina.

Lower taxes

South Carolina is generally a low tax state overall.  Its sales tax puts it around the middle of the pack. Property taxes are relatively low in comparison to the national average, and income taxes are about average. Real estate in South Carolina costs less, on average, in comparison to some of its neighbors (and certainly in comparison to the northeast) thanks to lower taxation and lower cost of living. All told, South Carolina ranks about 37 out of 50 states when it comes to tax burden. This is certainly ideal for retirees looking to make their money last.

Better weather

Let's be honest; the south has better weather than the northeast. Both retirees and people looking for work certainly prefer more months of heat to months of frigid cold and feet of snow.  That's why people in all demographics prefer to call states like South Carolina and Florida home. Something as simple as the weather is certainly a contributing factor to people wanting to call a new state home.

All of these reasons and more are why so many people are deciding that going south of the Mason-Dixon is the move for them. Whether it's for job opportunities or a more comfortable retirement, states like South Carolina are reaping the benefits as more northeastern residents find that things have become too expensive. Real estate prices have so far stayed relatively low. They're certainly lower in South Carolina than in states like New Jersey. Whether that lasts much longer remains to be seen. After all, simple supply and demand tells us that as more people decide that moving south is a good idea, the less property there will be for sale and prices will go up.

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Terry McLoughlin is a former teacher who know blogs about economics in a way anyone could understand. You can often find him with his nose in a book.