Kevin O'Leary Says He Moved From 'Taxachusetts' To Florida Because He Couldn't Afford To Live In Boston Anymore

Kevin O’Leary, the well-known investor and “Shark Tank” star, recently spoke about the growing challenges of home affordability and rising costs during an appearance on “Maria Bartiromo’s Wall Street.” O’Leary didn’t hold back in sharing his thoughts on why he moved from Massachusetts to Florida and what he sees as major financial hurdles facing Americans today.

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Discussing tax policies, O’Leary warned about the potential fallout from high tax rates, like France’s proposed 90% income tax. He compared this to similar policies in the U.S., saying these could make wealthy individuals move to states with lower taxes. He shared his personal experience, saying, “I left Taxachusetts, and I moved to Florida, and most of my neighbors where I live are from my hometown Boston. We cannot afford to live there anymore.”

During the interview, Bartiromo emphasized another important issue – the steep rise in home prices and the corresponding increase in down payment requirements. “You can say goodbye to a 20% down payment,” she said, pointing out that now, “you will need roughly 35% down before taking on the mortgage. Data shows existing home prices jumped 5.8% from last year, the highest number ever recorded.”

Adding to the burden of high home prices, mortgage rates have also spiked dramatically. O’Leary noted, “Mortgage rates have gone from 3.75% to over 7% in the last 24 months. That is a problem.” This jump means homeowners pay much more each month, making it difficult for average earners to keep up.

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The conversation also touched on the troubles faced by homeowners in high-risk states like California and Florida. Major insurers are either hiking rates or leaving these markets due to natural disasters and regulatory issues. O’Leary called California a “dumpster fire for business,” citing high taxes, regulatory policies, and environmental issues as major problems. He added, “If [insurance companies] can't make money, they won't insure you.”

O’Leary also shared some practical tips for people planning for retirement. He stressed the importance of saving regularly, suggesting that people put aside 10-12% of their salary throughout their careers: “Just save between 10 and 12% of your average salary of $68,000 a year during your career, and you’ll end up with a million and a half in the bank. The market generally gives you around 5% for cash or 8% for equities, and you do a blend of that, and you can live forever as long as you don’t buy stuff you don’t need.”

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He specifically recommended against unnecessary spending and encouraged people to be mindful of their buying habits, saying, “Go in your closet, how many sneakers don't you wear, how many jeans do you not put on, how many T-shirts have you never worn? It's about two-thirds of the clothing.”

In a previous interview, O’Leary had some other advice about unnecessary spending, saying it’s “such a waste of money” to buy expensive coffee that costs $2.50 to purchase but “about 18 cents” to make. “I drink coffee, one cup every morning. It costs about 18 cents to make it, and I invest the rest.”

He’s also not a big fan of spending too much on eating out. He thinks spending $15 on sandwiches makes no sense for something that costs 99 cents at home. “You know, you go to work, you spend 15 bucks on a sandwich. What are you an idiot?” he said in a TikTok video.

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