The Pros and Cons of Choosing Delaware as Your New Home

Moving to a new state is like starting a new chapter in a book. There’s a mix of excitement and anticipation but worry about the unknown. What will life hold in this brand-new setting? If you’re opening a new chapter in Delaware, you’ve arrived at the right place. Investigating the pros and cons of Delaware paints a picture of what to expect in the heart of the Mid-Atlantic region.

Delaware may be the second smallest state but underestimate the full lifestyle it has to offer. With its beautiful landscapes, active lifestyle, and favorable tax environment, it attracts those tired of the congestion in the DC or Philadelphia metros but still want similar perks. Here’s what the First State can do for you:

The Pros of Delaware

The Tax Benefits of the Diamond State

Delaware has long attracted those looking to save on taxes. Locals shop without sitting at the register wondering how much will be tacked onto your total. It’s one of only five states with no sales tax! How convenient is that?

And the property tax rates in Delaware are significantly lower than the national average. For 2024, Delaware had the tenth-lowest property tax burden with an average effective rate of 0.61%. Homeowners paid an average of $2,067.97 in taxes on a median-valued home.

Yes, there are state income taxes, but at a graduated rate between 2.6-6.6%, depending on your income. Between no sales taxes and low property taxes, this tax-friendly state keeps more money in your pocket for indulging in the state’s famed crab cakes.

A Geographical Hotspot

Delaware’s location is like a strategic asset on a board game map. It’s poised between the powerhouse metropolises. Philadelphia, Baltimore, and Washington, D.C. are all within a two-hour drive and are connected through low-cost rail routes. Locals can easily reach incredible career and leisure opportunities in these hot destinations without dealing with their daily traffic issues and high prices.

Not to be outdone, Delaware’s coastlines are a playground for outdoor enthusiasts. The state’s beaches are a welcome escape from city life and a space to reset with the lulling sounds of the Atlantic as your backdrop. Washington, DC, residents have long used Delaware’s coast for summer vacations.

Embracing Small Size Charm

Some see the compactness of the second-smallest state as an advantage. It creates tight-knit communities where people know their neighbors. Commutes are stress-free and often only need minutes, not hours, to get to work or the grocery store. A few cities and towns are designed to be highly walkable between work, play, and home.

Befriending Nature’s Best

Delaware is blessed with flat, fertile farmlands, wooded hills, and sparkling waterways. Yet, its coastline stands as its best feature. It’s a combination of wildlife sanctuaries and a respite for humans. The soothing shores of Rehoboth, Bethany, and Dewey Beaches draw people looking to recharge by the sea. Over a million people visit the Delaware shores each year.

Another pro of Delaware is its over 16 state parks and beaches. The state provides incredible public access to outdoor recreation. Get out on the backwaters on a canoe or kayak, try your hand at sailing, or fish from the piers.

A Healthy Perspective

In a state with this many natural areas, it’s no surprise that the focus on health is high. With easy access to healthcare services and quality institutions, residents can rest assured they’re in good hands. Johns Hopkins Medical Center and Jefferson University Hospital are nationally renowned hospitals within easy reach from Delaware. That’s on top of the local health care system operating in the state’s three counties.

Add to that the state’s promotion of bicycling. Delaware stands out as one of the most bike-friendly states, going so far as to codify it into law. Find multiple cycling trails across the state, perfect for an afternoon cruise or commuting to work on nice days.

Sociocultural Richness

Delaware’s cultural scene can surprise and delight in its diversity. This Mid-Atlantic original colony features historical sites, museums, and a lively arts and entertainment environment. Families love the amusement park at the Rehoboth Beach Boardwalk, while the historian will get a kick out of the du Pont family’s lavish living quarters at the Winterthur Museum.

Job Prospects

The state economy is primarily service-oriented due to its small size, and overall, the state lacks major metropolitan centers. However, a business-friendly environment has led to 68% of Fortune 500 companies calling the state home. For its compact size, Delaware had a high number of legal entities–a projection of over two million by 2023!

Economically, it ranks 16th in the nation and is third for its pro-business setup. Chemical manufacturing is a major industry, and some call it the “Chemical Capital of the World.” Manufacturer DuPoint is based out of Delaware. However, the financial and insurance industry is another dominating sector.

Cons of Living in Delaware

Navigating Your Budget

While Delaware can save you on sales and property taxes, the overall cost of living doesn’t quite share the thriftiness. Living in Delaware is 3.5% more expensive than the national average. Housing can be relatively expensive, and the general cost of goods and services is closer to the high end of the national spectrum.

Of course, the actual cost depends greatly upon where you want to set up shop in Delaware. State capital Dover ran 1% below average, while Wilmington was 4.1% more expensive. Coastal towns can be even more expensive because of their waterfront location and demand for housing.

The Schooling Quandary

Delaware’s education system is a mixed bag, receiving mixed reviews nationally. In the 2023 rankings, it came in at no. 30. With some high-performing schools and others less so, it’s an area for personal consideration, especially for families with school-aged children.

The state’s limited number of higher education institutions may also affect your career or educational aspirations. It does have the public University of Delaware and the traditionally HBCU Delaware State University. Wilmington University and Golden-Beacom are private universities. These institutions do earn marks for high quality; it’s there are fewer choices in Delaware. 

Lack of extensive transportation

When evaluating Delaware’s quality of life, factor in the ease of transportation. One of the cons of Delaware is the absence of an international airport. Using a car to navigate the state’s peninsula layout is also necessary. If you don’t live in Wilmington, you’ll need to drive around to get to work or the big cities.

Mixed climate

The state’s climate may also be a point of contention. It presents a mix of weather conditions — four distinct seasons with the hazards of winter snow. Dense, pea-soup-thick fog can be an issue in some waterfront and low-lying areas. Plus, Delaware’s coastal location does make it at risk from the occasional hurricanes.

Super dense living

Population density is another facet to consider. While small, Delaware holds the title of one of the most densely populated states in the nation, affecting traffic patterns, living space, and specific aspects of community life. It had the sixth-highest population density in the nation and was the 14th fastest-growing state. Delaware is not that big, and all those people have to pack in somewhere!

Making the Choice: Delaware’s Dichotomy

Choosing where to live is a personal journey. Ultimately, the value of living in any location lies in intangible experiences — the people you meet, the moments you share, and the sum of daily life.

As you weigh calling Delaware home, listing the pros and cons can bring your decision into sharper focus. Delaware presents possibilities. Settle into the quintessential small-town life, but one contrasted against the nearby thriving cities. Still, if it interests you, keep exploring the First State; a local real estate agent can help illuminate its charms even better.