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Many companies and individuals prior to the pandemic began to consider reducing their presence in high-cost business hubs (e.g., New York City, San Francisco, and Los Angeles). In addition, the limitation on the state and local tax itemized deduction imposed under the 2017 federal tax reform legislation also led individuals to consider relocating to lower or no income tax jurisdictions. 

For companies considering moves outside of large metropolitan areas, decision-making requires a balance between costs, talent, and regulations. However, even though some companies are expanding their presence elsewhere, they are not completely exiting high cost states such as New York and California, and their locations in these states remain strategic hubs.