{"id":5596,"date":"2024-01-26T06:57:00","date_gmt":"2024-01-26T10:57:00","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=5596"},"modified":"2024-01-24T10:19:51","modified_gmt":"2024-01-24T14:19:51","slug":"brace-yourselves-wealthy-millennials-are-migrating-to-these-two-states","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/brace-yourselves-wealthy-millennials-are-migrating-to-these-two-states\/","title":{"rendered":"Brace Yourselves; Wealthy Millennials are Migrating to These Two States!"},"content":{"rendered":"\n<p>In the past few years, we\u2019ve witnessed rates of migration within the United States change in record-setting numbers, including a sizable number of wealthy millennials. Let\u2019s closely examine whose numbers are on the rise, whose are rapidly declining, why this may be happening, and what it all means for you as an investor in the current real estate market.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this Article:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/propertyonion.com\/education\/brace-yourselves-wealthy-millennials-are-migrating-to-these-two-states\/#Income_and_Migration_Figures_Analysis\" >Income and Migration Figures Analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/propertyonion.com\/education\/brace-yourselves-wealthy-millennials-are-migrating-to-these-two-states\/#Why_Are_These_High_Earners_Flocking_to_Florida_and_Texas\" >Why Are These High Earners Flocking to Florida and Texas?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/propertyonion.com\/education\/brace-yourselves-wealthy-millennials-are-migrating-to-these-two-states\/#Future_Real_Estate_Implications\" >Future Real Estate Implications<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Income_and_Migration_Figures_Analysis\"><\/span>Income and Migration Figures Analysis<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To quantify the statistics surrounding this exodus, analysts considered income, age, and population data collected from across the United States. The report considers anyone between the ages of 26 and 35 years old (born between 1988 and 1997) to be a millennial, and those with annual incomes of $200K+ as part of the target cohort being measured.<\/p>\n\n\n\n<p>The analysis was configured by&nbsp;<a href=\"https:\/\/smartadvisormatch.com\/data\/where-young-rich-move-2023\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">SmartAsset<\/a>, a finance company, based on IRS statistics from 2021. Only 2% of millennials made $200,000+ annually according to the data, and&nbsp;<a href=\"https:\/\/smartadvisormatch.com\/data\/where-young-rich-move-2023\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">yet they comprised 16%<\/a>&nbsp;of the income in this cohort.<\/p>\n\n\n\n<p>By focusing on the number of individuals in the target age and income range, experts were able to form a larger picture of the migration patterns in recent years and pick up on some trends.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>A big concern for many of those in higher income brackets is taxes, especially income taxes. <\/p><\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Net Positive Income Migration States<\/h3>\n\n\n\n<p>According to the analysis, the number one state claiming these wealthy millennials is Florida. The analyzed IRS data revealed that 3,391 millennials who claimed an annual income of $200,000 or more on their taxes moved to Florida. While 1,216 individuals in this group moved away from the Sunshine State, it still netted 2,175 of these high earners.<\/p>\n\n\n\n<p>Number two in the report is Texas with a positive net growth of 1,909 wealthy millennials.&nbsp;<\/p>\n\n\n\n<p>The following states fill out the top ten states in the study that these high-earning individuals are flocking to in order of rank: New Jersey, Colorado, North Carolina, Connecticut, Washington, Tennessee, Arizona, and South Carolina.<\/p>\n\n\n\n<p>Migration in many of these states, especially Florida and Texas, has been on the rise for the past few years. Before we examine why they have become such desirable places to live, let\u2019s first look at what states are losing the largest portions of this population.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Net Negative Income Migration States<\/h3>\n\n\n\n<p>New York tops the list with a staggering negative 5,062. While 3,943 in this category moved to the state in 2021, an astounding 9,005 moved elsewhere.<\/p>\n\n\n\n<p>Following closely behind New York is California. The state had 4,988 millennials earning $200K+ a year move in, and yet a whopping 9,483 moved away leaving the state with a deficit of 4,495 in this cohort.<\/p>\n\n\n\n<p>The remaining states ranked in the bottom ten by ascending order include Illinois, Massachusetts, Missouri, Louisiana, North Dakota, New Mexico, Delaware, and Alaska. All those listed have net negative income migrations in this segment of the population based on the analysis.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Are_These_High_Earners_Flocking_to_Florida_and_Texas\"><\/span>Why Are These High Earners Flocking to Florida and Texas?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The numbers are clear. Based on&nbsp;<a href=\"https:\/\/smartadvisormatch.com\/data\/where-young-rich-move-2023\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">interviews<\/a>&nbsp;with some high earners who have recently undergone moves to either Texas or Florida, there are a few reasons pushing millennials to follow suit.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>While some blue states, like Colorado, may still be doing well in growing populations within this cohort, several others are are losing their residents to more conservative climates.<\/p><\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Taxes<\/h3>\n\n\n\n<p>A big concern for many of those in higher income brackets is taxes, especially income taxes. Often being asked to contribute higher percentages based on their gross income, they pay exorbitant amounts.&nbsp;<a href=\"https:\/\/fortune.com\/2023\/08\/24\/wealthy-millennials-moving-to-florida-texas\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Neither Florida nor Texas<\/a>&nbsp;have state income taxes, which lends a lot of appeal to high-income earners regardless of age.&nbsp;<\/p>\n\n\n\n<p>In recent&nbsp;<a href=\"https:\/\/www.dailymail.co.uk\/news\/article-12351995\/California-New-York-lose-640M-tax-revenue-migration-conservative-Florida-Texas-coffers-boosted-23-1BN.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">interviews<\/a>, billionaires, such as Elon Musk, Carl Icahn, David Tepper, and more, have all cited tax reasons as a prominent factor behind their moves.<\/p>\n\n\n\n<p>In California and New York, income tax is required and higher than in some other states. In New York, income tax can rocket up to 12% for some of these high-income earners.&nbsp;<\/p>\n\n\n\n<p>California\u2019s entire state budget relies on these wealthy individuals to contribute substantially through taxes, and the recent loss of many millionaires and billionaires has been cause for concern with state officials. The annual loss of tax revenue in California and New York during the period measured added up to a combined $640 million.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Politics<\/h3>\n\n\n\n<p>One of the many reasons these <a href=\"https:\/\/propertyonion.com\/education\/millennials-hardly-own-any-real-estate\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"millennials (opens in a new tab)\">millennials<\/a> are picking up and transplanting their lives somewhere new is politics. With California and New York at the top of the list losing tax revenue while Florida and Texas are at the top earning it, it\u2019s easy to notice some big differences between the states.<\/p>\n\n\n\n<p>While some blue states, like Colorado, may still be doing well in growing populations within this cohort, several others are are losing their residents to more conservative climates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">State Safety Protocols<\/h3>\n\n\n\n<p>No doubt about it, New York was one of the places hit hardest during the pandemic. The state, especially New York City, implemented many lockdown procedures that lasted far longer than in other states with much stricter limitations in an attempt to slow the spread of <a href=\"https:\/\/propertyonion.com\/education\/huge-migration-out-of-cities-is-the-real-covid-19-real-estate-story\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"COVID-19 (opens in a new tab)\">COVID-19<\/a>.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>This is an important, profitable population and potentially a reason to expand your real estate investment strategy. <\/p><\/blockquote>\n\n\n\n<p>Some wealthy individuals have voiced their concern about the lack of freedom being a reason to move to Florida and Texas. The two states are often perceived to have a higher level of personal freedom in this regard.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Future_Real_Estate_Implications\"><\/span>Future Real Estate Implications<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>By now, you\u2019re probably wondering what this has to do with you and&nbsp;<a href=\"https:\/\/propertyonion.com\/education\/how-to-invest-in-properties-for-a-coming-recession-in-2024\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">your real estate investment strategy<\/a>. If you live in Florida, Texas, or any of the other top ten places gaining these high-earning millennials, you\u2019ll want to sit up and pay attention.&nbsp;<\/p>\n\n\n\n<p>This is an important, profitable population and potentially a reason to expand your real estate investment strategy. While migration patterns do tend to shift over the years, luxury real estate appears to be growing in these markets.<\/p>\n\n\n\n<p>On the flip side, don\u2019t be the last to notice your neighbors are gone in New York, California, or any of the other net negative states.&nbsp;<\/p>\n\n\n\n<p>People are clearly choosing where they want to live, especially with remote work on the rise, younger executives and entrepreneurs can have their office wherever they want with no need to report to headquarters daily.&nbsp;<\/p>\n\n\n\n<p>Will some of these states losing large percentages of high-income earners change their tax policies? Are we in for another&nbsp;<a href=\"https:\/\/propertyonion.com\/education\/why-there-will-be-no-2023-housing-market-crash\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">housing market crash<\/a>? Who knows, none of us has a crystal ball, but with this information at your fingertips, you can prepare yourself for whatever impact it may have on your real estate investing strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the past few years, we\u2019ve witnessed rates of migration within the United States change in record-setting numbers, including a sizable number of wealthy millennials. Let\u2019s closely examine whose numbers are on the rise, whose&hellip;<\/p>\n","protected":false},"author":34,"featured_media":5752,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[419,534,377,777,780,778,779,776],"class_list":["post-5596","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles","tag-florida-real-estate","tag-investment-strategy","tag-investor","tag-lower-taxes","tag-mass-exodus","tag-rates-of-migration","tag-texas-real-estate","tag-wealthy-millennials"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=5596"}],"version-history":[{"count":3,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5596\/revisions"}],"predecessor-version":[{"id":5753,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5596\/revisions\/5753"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/5752"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=5596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=5596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=5596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}