Rich millennials are moving out of California, new study says. Here’s where they’re going
Wealthy millennials are moving out of California at the highest rate in the nation, according to a new study by SmartAsset.
The personal finance website looked at recent tax returns filed by households aged 26 to 45 that bring in more than $200,000 per year — earning the classification of “high earners” by the IRS.
High-earning members of Generation Y have “more disposable income and economic freedom than their median counterparts, so their impact on local economies can be outsized,” SmartAsset managing editor Jaclyn DeJohn wrote in an Aug. 29 article titled “Where Wealthy Millennials Are Moving.”
“When these wealthy millennials choose to move for job opportunities, lifestyle, family and other reasons, their disproportionate economic power also goes with them,” DeJohn added.
How many rich millennials left California in recent years? And where were they headed?
Here’s what the data show:
How many high-earning millennial households call California home?
California had a net loss of 9,181 wealthy millennial households, the most out of any state in the nation, according to SmartAsset.
That’s based on IRS data from the 2021 and 2022 tax years, the latest available.
The Golden State had an inflow of 14,139 high-earning millennial households and and an outflow of 23,320 rich millennial households, SmartAsset found.
A total of 589,524 millennial households filed tax returns reporting more than $200,000 in annual income, the site said.
The average adjusted gross income for wealthy millennial households was $557,054.
In contrast, the median income in the United States is about $75,000, the website said, with Gen Y’ers earning about $84,000 annually.
Which US states are losing the most wealthy millennials?
According to SmartAsset, these 10 states lost the most high-earning millennial households:
California
New York
Illinois
Massachusetts
Pennsylvania
Minnesota
Louisiana
Michigan
Missouri
Where are rich millennials moving? See top 10 states
Florida saw the highest influx of wealthy millennials, according to the SmartAsset study.
The Sunshine State had a net gain of 6,188 high-earning millennial households — about a thousand more than Texas, which came in second place with a net gain of 5,151.
On average, millennial households in Florida earn $551,114 per year, while those in Texas make $469,975 annually.
These 10 states saw the biggest increases in top-earning millennial households, SmartAsset found:
- Florida
- Texas
- North Carolina
- Colorado
- Tennessee
- South Carolina
- Georgia
- Arizona
- Idaho
- Nevada
How did SmartAsset come up with its rankings?
To determine where wealthy millennials are moving, SmartAsset examined IRS data from the 2021 and 2022 tax years for households between ages 26 and 45 earning $200,000 or more per year.
“The inflow of qualifying households in each state were compared with the outflows to determine the net migration of high-earning households,” SmartAsset said.
SmartAsset researchers also looked at the average AGI for each state’s wealthy millennial households.
This story was originally published September 11, 2024 at 10:54 AM.
