Maybe. This is a reasonable scenario, but it all feels like it's set in an extremely warm world where it doesn't snow at sea level anywhere in the continental US. This also makes me wonder if there would be a mega-resort developments in Alaska for retirees who enjoyed the climate of the present day Upper Midwest or Northern New England?
However, at the current rate of change, economic considerations like taxes and the cost of housing seem to dominate. Parts of Upstate NY and the Upper Midwest do have the nearly free housing part, but are they ready to repeal or greatly reduce state income taxes and/or change their laws to basically let employers do whatever the heck they want? Would it even be a good thing if they did? Because that is mostly what's attracting people and businesses to the South right now.
I think climate migration and capitalism's race to the bottom are horrific personally, but I set that aside when making predictions. It's neither "good" nor "bad" inherently, it just is what it is, there's adaptive and maladaptive practices under the tyranny of capital that we choose to continue subjecting ourselves to.
Expanding tax bases would create budget surpluses, and considering that Republicans have been making headway up there for some time, politicians will absolutely jump on the opportunity for tax cuts. As the industrial sector of the bourgeoise strengthens with increasing profits and government support, they'll gain influence over politics there and cut into workers' rights. The Upper Midwest will "win" the race to the bottom in the end, especially if the South opts not to let coastal cities float away and has to raise taxes for infrastructure improvements.