A recent study has revealed a significant migration trend among affluent millennials, with many leaving traditionally liberal states to settle in conservative-led southern regions.
The study, conducted by Smart Asset, found that millennials aged between 26 and 45, boasting a household income exceeding $200,000 annually, are leaving states like California and New York in large numbers. Their destination of choice? States like Texas and Florida, where their wealth can be stretched further, ensuring greater financial stability.
According to The Post Millennial, the study analyzed tax return data from 2021 and 2022, revealing that California suffered the most significant loss of high-earning millennials, with a net loss of 9,181 households. New York followed closely behind, losing 4,251 households. Despite 14,139 wealthy millennials moving to California, a staggering 23,320 chose to leave. Similarly, New York saw an influx of 11,340 new residents, but a departure of 15,591. Both states, known for their high cost of living, are losing residents who are seeking areas where their income can go further, especially amidst rising inflation concerns.
The study also highlighted the potential impact of this migration on local economies. With the median income for this age group in the United States standing at $84,000 annually, the movement of this wealthier demographic to states with lower wealth levels can significantly influence local economies. Florida and Texas were the biggest beneficiaries of this trend, with a net gain of 6,188 and 5,151 wealthy millennials respectively. North Carolina also saw an increase, welcoming 1,970 according to the study.
This migration trend underscores the appeal of conservative-run states to the affluent millennial demographic, who are evidently prioritizing financial stability and the ability to maximize their income. It also raises questions about the economic future of traditionally liberal states that are seeing a significant exodus of high-earning residents.
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