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.
Want to Understand How
Athletes Actually Lose it All?
The APSM “7 Ways Athletes Go Broke” Report Includes inside looks into the primary reasons more athletes end up broke than not after retirement from:
- Hidden behavioral traps behind collapse.
- Spending patterns that drain wealth faster than income can replace it.
- High-risk advisors and predatory industries.
- Divorce, taxes, lifestyle creep & breakdowns.
These are real athlete case studies you can learn from to avoid the same fate as
an athlete, parent, advisor or fan alike.
Future-proof your own frameworks,
avoid the exact same mistakes.
If you want real financial literacy,
the kind that protects you, not just informs you…
This is the blueprint.
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
- 2026 NFL Draft: Every 1st Round Contract Details, Net Income & Residency Analysis
- Garrett Wilson’s $130 Million Contract with the New York Jets
- Fernando Mendoza Real Estate and Residency Analysis: Florida vs Indiana vs Nevada
- Private Jets For Athletes: Flex, Asset, or Liability?
- New York State Athlete Taxes
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.
