Wealthy Gen Zers are leaving California, new study says. Here’s where they’re moving

Rich Generation Z residents are moving out of California at one of the highest rates in the nation, according to a new SmartAsset study.

The personal finance website looked at recent tax returns filed by households under the age of 26 that bring in more than $200,000 per year — earning the classification of “high earners” by the IRS.

“Due to their age and income, they may be more prone to moving for economic and lifestyle opportunities than some older counterparts,” SmartAsset managing editor Jaclyn DeJohn wrote in a Sept. 17 article titled “Where Wealthy Gen Zers Are Moving.”

“With a longer time frame for careers and investments in front of them, Gen Zers could potentially have a larger lifetime impact on their communities,” DeJohn added.

How many rich Gen Zers have left California in recent years? And where were they headed?

Here’s what the data show:

How many high-earning Gen Z households call California home?

California landed at No. 9 on SmartAsset’s list of the 10 states that are losing the most wealthy Generation Z residents, with a net loss of 52 households.

That’s based on IRS data from the 2021 and 2022 tax years, the latest information available.

A total of 847 high-earning Gen Z households moved to the Golden State during that time frame, while 899 moved out.

California has a total of 9,379 Gen Z households earning $200,00 or more each year, SmartAsset said.

According to the study, Gen Zers comprise a tiny fraction of all wealthy households in the state: 0.53%.

Like their younger counterparts, rich millennials are also leaving California, according to a separate SmartAsset study.

The Golden State had a net loss of 9,181 wealthy millennial households, the most out of any state in the nation, The Sacramento Bee previously reported.

Which U.S. states are losing the most wealthy Gen Z residents?

According to SmartAsset, these 10 states lost the most high-earning Gen Z households:

1. Illinois
2. Washington
3. Massachusetts
4. New Jersey
5. Pennsylvania
6. Maryland
7. Connecticut
8. North Carolina
9. California
10. Michigan

Where are rich Gen Zers moving? See top 10 states

New York experienced the highest increase in wealthy Gen Z households, according to the SmartAsset study.

In one year, the Empire State saw a net gain of 773 Gen Z households earning $200,000 or more annually, the study found.

That’s about eight times more than Florida, which came in second place with a net gain of 89 high-earning Gen Z households.

These states saw the highest influx of top-earning Gen Z households, SmartAsset found:

1. New York
2. Florida
3. Tennessee
4. Colorado
5. Texas
6. Arizona
7. Mississippi
8. Nevada
9. Montana
10. Maine

How did SmartAsset come up with its rankings?

To determine where wealthy Gen Zers are moving, SmartAsset examined IRS data from the 2021 and 2022 tax years for households ages 25 and under 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 Gen Z households.

Sarah Linn

The Tribune

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Sarah Linn is an editor and reporter on the West Service Journalism Team, working with journalists in Sacramento, Modesto, Fresno, Merced and San Luis Obispo in California and Bellingham, Olympia and Tri-Cities in Washington, as well as Boise, Idaho. She previously served as the Local/Entertainment Editor of The Tribune in San Luis Obispo, working there for nearly two decades. A graduate of Oregon State University, she has earned multiple California journalism awards.