Jets David Bailey Residency Mistake

David Bailey, the No. 2 overall pick in the 2026 NFL Draft, enters the league with a $54.67 million rookie contract and a massive ~$36.8 million signing bonus.

Before the explosive rusher records a single sack for the New York Jets though, the young man faces an important decision at the start of his financial life and wealth building journey.

The question behind the gross headline figures and scouting analysis, is one that determines how much money Bailey actually pockets:

Where should David Bailey live?

Because for a 21‑year‑old with eight‑figure guarantees, the wrong address doesn’t just cost money, it destroys wealth.

APSM breaks down Bailey’s real estate and residency landscape and suggests where he should establish his primary residence to maximize his net worth across the four states that now define his financial future:

His home state (California)
His college state (Texas)
His drafted state (New York)
His playing state (New Jersey)

Does David Bailey Own Any Property?

There are no public records of Bailey owning real estate during his time at Texas Tech or prior to the 2026 NFL Draft.

However, Bailey grew up in the state of California, where his family home is estimated to be worth ~$1.7-$2 million.

Like most NIL‑era athletes, Bailey likely rented during his college days, stacked his NIL earnings (hopefully), and waited until the draft to make his first major real estate move.

So, instead of analyzing existing properties, APSM evaluates the four markets available to Bailey and suggests the optimal residency choice, for any athlete who ever finds themselves in a similar situation.

Market #1: California (Home State)

Median Home Price: ~$760,000
Property Tax Rate: ~0.75%
State Income Tax: 13.3%
Cost of Living: ~40–50% above U.S. average
Market Trend: High appreciation in coastal metros (5–7% annually)

Pros

Family ties
Strong luxury real estate market
High long‑term appreciation

Cons

13.3% state income tax
One of the most expensive markets in the world
Residency audits are aggressive
Nearly as bad as New York for high‑income earners

APSM Take

California is a great place to buy property, but a terrible place to be a resident tax-wise. It is also financial disaster for Bailey.

If he keeps his residency status in the state of California, he could potentially lose:

~$4.9 million in taxes on his signing bonus
Millions more across his rookie deal
A massive chunk of his long‑term net worth

Market #2: Texas
(College State, Suggested Residency Choice)

Median Home Price: ~$360,000
Property Tax Rate: ~1.6%
State Income Tax: 0%
Cost of Living: ~5% below U.S. average
Market Trend: Strong appreciation in Dallas, (5–8% annually)

Pros

0% state income tax
No income tax on signing bonus
“Affordable” luxury real estate
Strong long‑term appreciation
Familiar environment from Texas Tech
Clean, defensible residency for pro athletes

Cons

Higher property taxes
Must document residency carefully while playing in NY/NJ

APSM Take

The “Lone Star State” of Texas is the best financial home base for Bailey.

It offers the same tax advantages as Florida or Nevada, but with the added benefit of familiarity and proximity to where he spent his college years.

If Bailey establishes Texas residency before his signing bonus hits, he protects every dollar from state income tax.

Market #3: New York
(Jets HQ State)

Median Home Price: ~$650,000
Property Tax Rate: ~1.7%
State Income Tax: 10.9%
NYC Income Tax: ~3.9%
Cost of Living: ~25% above U.S. average

Pros

Close to Giants HQ
Strong luxury rental market
Convenience for daily life

Cons

10.9% state income tax
14.8% combined tax if he lives in NYC
High cost of living
Residency audits are brutal

APSM Take

Bailey should never establish New York residency if he can choose otherwise. This is one of the most financially consequential residency situations in the entire draft class.

A New York address could potentially cost him:

~$2.53 million on his signing bonus
Millions more across his rookie deal
A lifetime of higher taxes

New York is where Bailey works, NOT where he should live.

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Market #4: New Jersey
(Playing State)

Median Home Price: ~$520,000
Property Tax Rate: ~2.2% (highest in the U.S.)
State Income Tax: 10.75%
Cost of Living: ~15% above U.S. average

Pros

Close to MetLife Stadium
Strong suburban markets (Hoboken, Jersey City, Montclair)

Cons

10.75% state income tax
Highest property taxes in America
No financial advantage for a top‑2 pick

APSM Take

New Jersey is slightly better than New York, but still terrible when it comes to taxes. Bailey should rent in Jersey if he wants to stay out of New York, but gets the same suggestion as living in the big apple…

The #2 overall pick should NOT buy on the Jersey shore, and absolutely NOT establish residency in either state.

You can enjoy an area without letting it take you for more than it’s worth.

Residency Impact on Bailey’s Signing Bonus

Residency State	State Tax Rate	Net Signing Bonus	Day‑1 Loss vs Texas
Texas	0%	~$23.18M	—
California	13.3%	~$19.9M	~$3.3M lost
New York	10.9%	~$20.65M	~$2.53M lost
New Jersey	10.75%	~$20.7M	~$2.48M lost

Texas saves Bailey ~$2.5-$3+ million annually in tax savings on his signing bonus instantly, and tens of millions over the course of his NFL career, especially if he signs a big extension in his fifth year as a pro.

Investment Scenario:
Turning His Savings Into Wealth

ROI Rate (5 Years)	Projected Value on $23.18M
10% Return	~$37.3M
12% Return	~$40.8M
15% Return	~$46.6M
20% Return	~$57.7M

If Bailey mistakenly claims New York or California residency, his starting capital for compounding drops by millions, cutting every projection in the table above by ~11-13%.

Jock Tax Considerations

NFL players pay jock taxes in nearly every state they play in.

Residency affects:

How much income is taxed at home
How much is taxed on the road
How much of the signing bonus is taxed
How much of the base salary is protected

Texas Advantage

No state income tax
No tax on signing bonuses
Clean residency
No audit risk

California Disadvantage

13.3% tax
Aggressive audits
Taxes signing bonuses

New York / New Jersey Disadvantage

10.9% / 10.75%
NYC adds another 3.9%
Residency audits are relentless

When it comes to jock taxes, Texas is the cleanest, safest, most defensible residency choice for Bailey.

APSM Real Estate Verdict

Texas Should Be His Primary Residence.
California Should Be His Secondary Market.

Bailey should 100% AVOID New York & New Jersey.

If Bailey wants to maximize his rookie earnings, protect his signing bonus, and build long‑term wealth, the suggested move is that he should establish Texas residency immediately if he hasn’t already.

Suggested Real Estate Strategy
for David Bailey

Primary residence: Texas
Secondary property: California (family ties)
Avoid: New York & New Jersey
Invest: Signing bonus into index funds
Goal: Build a $40-$45M+ net worth by Year 5 (extension year)

Bailey’s financial future is shaped more by his address than his pass‑rush moves. Texas is the address that builds generational wealth.

Next Reads

Credits

Written By: Aidan Anderson
Research & Analysis: Apostle Sports Media LLC
Sources: NFL Draft Data, Sportico, Spotrac, Zillow / Redfin Market Research, ESPN, WSJ, APSM Proprietary Analysis
Featured Image: Public Domain / Instagram
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional financial advice.