Wealthy millennials are making a significant shift in residence, leaving high-cost blue states on the coasts and relocating to more affordable red states in the south. A recent study conducted by Smart Asset analyzed tax return data from 2021 and 2022, revealing that California and New York are experiencing a significant departure of high-earning millennials. California saw a net loss of 9,181 households, while New York saw a net loss of 4,251 households. This trend is reflective of the higher cost of living in these states, making it difficult for even high-earning individuals to live comfortably.
Despite losing high-earning millennials, both California and New York still attracted a significant number of wealthy residents. California welcomed 14,139 wealthy millennials into the state but saw more leaving, with a total of 23,320 departures. Similarly, New York gained 11,340 new wealthy residents but lost 15,591 individuals. The ability to stretch their money further in states with lower living costs and taxes is likely driving this trend of wealthy millennials migrating to more affordable regions.
States such as Florida and Texas are proving to be popular destinations for wealthy millennials looking to relocate. Florida saw a net gain of 6,188 wealthy millennials, while Texas experienced a net gain of 5,151. North Carolina also attracted a significant number of high-earning individuals, with a net gain of 1,970. The allure of lower living costs, better quality of life, and increased economic opportunities are likely contributing factors to why wealthy millennials are choosing to move to these states.
The study found that the median income among millennials in the US is approximately $84,000 annually, showcasing the financial success of the generation as a whole. However, those who bring in $200,000 or more annually have even greater economic freedom and disposable income. The impact of these high-earning individuals on local economies can be significant, especially when they choose to relocate. Their economic power follows them wherever they go, influencing the economies of the states they choose to reside in.
The shift of wealthy millennials from blue states on the coasts to red states in the south highlights the ongoing trend of individuals seeking more affordable and economically favorable living conditions. The ability to maintain a high standard of living while also enjoying lower living costs and taxes is appealing to many high-earning millennials. As this trend continues, states like Florida, Texas, and North Carolina are likely to see continued growth in their wealthy millennial populations, contributing to the economic growth and development of these regions.
Overall, the movement of wealthy millennials from high-cost blue states to more affordable red states demonstrates the extent to which individuals are willing to prioritize economic factors when deciding on their place of residence. The significant impact that high-earning individuals can have on local economies underscores the importance of understanding and tracking these demographic trends. As more wealthy millennials choose to relocate to states with lower living costs and greater economic opportunities, the economic landscape of the US is likely to continue evolving in response to these shifting population patterns.
