Young, rich workers are fleeing New York and California—here’s where they’re going

Skyline of Miami | Sylvain Sonnet | Getty Images

While Florida may have gained fame as a favored retirement haven, it's presently drawing in a substantial number of affluent and youthful individuals. According to a recent assessment by SmartAsset, Florida has secured the leading position as the state of choice for attracting and retaining this demographic. The analysis centered on net migration and specifically targeted individuals aged 26 to 35 who boast an annual adjusted gross income of at least $200,000, utilizing the most recent IRS data from 2021.

During that year, Florida experienced an influx of 3,391 young high earners, while 1,216 individuals of the same demographic departed. This resulted in a net migration of 2,175 prosperous young adults relocating to the state, as per SmartAsset's findings. Texas secured second place, witnessing a significant surge of 4,048 affluent young individuals moving in over the course of a year. (California claimed the top spot for the highest influx of these taxpayers, with nearly 5,000 newcomers.) However, Texas also saw a considerable exodus of over 2,000 well-off young individuals, leading to a net migration of 1,909.

New Jersey secured the third spot. Despite a generally high rate of affluent individuals leaving the state across all age groups, it still managed to net 1,048 new prosperous young professionals during the same year. SmartAsset's Jaclyn DeJohn, the managing editor of economic analysis, highlighted this as a noteworthy departure from overall trends in the report.

Here’s where young Americans pulling in at least $200,000 per year are moving:

Where are young, rich Americans moving?

States with the highest levels of net migration of people in the U.S. age 26-35 earning at least $200,000 annually

The destinations of choice for young Americans earning at least $200,000 annually are notable for several reasons. Florida and Texas, for instance, stand out due to emerging tech hubs like Austin and Miami, which offer opportunities that are particularly appealing to individuals with specialized skills aiming to advance their careers. Additionally, the warm climate and absence of income tax in these states serve as attractive features.

On the other hand, New Jersey's appeal lies in its proximity to the career, social, and entertainment opportunities of New York City. This setup allows young people to potentially save money while enjoying a suburban lifestyle—a scenario that strikes a balance between the best of both worlds. DeJohn also highlighted that New Jersey's robust public school system, bolstered by high real estate taxes, is especially advantageous to young families compared to retirees.

New York and California boast the highest numbers of young high earners in any state, and they also see a substantial influx of affluent young individuals. In 2021, New York welcomed nearly 4,000 young prosperous taxpayers, while California became home to almost 5,000. Nevertheless, both states experienced departures of over 9,000 individuals from the same demographic, placing them at the bottom of the list for net migration of the young and affluent.

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By Jennifer Liu | www.cnbc.com

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