California: Losing Young & Rich to Other States

So, where are they choosing to call home?

Yes! Could you be a dear, and send the car around? I'm leaving California.Photo byLance ReisonUnsplash

When I was a kid living amongst the cornfields of Nebraska in the late 60s - early 70s, I used to dream about graduating, jumping in my hot convertable (I had yet to buy), and head out to sunny California.

Over the decades millions of people did just that, especially the young and rich. They moved to the Golden State to enjoy their weath in a beautiful, exciting, and exotic land of opportunity.

Today that has changed dramatically. California has lost its sex-appeal to many of those earning at least $200,000 per year and aged between 26 and 35. In a recent study by SmartAsset, found that Florida and Texas doubled their amount of new young and rich residents over any of the other states.

SmartAsset also pointed out is that half of the top ten states leading the California market do not have a state income tax: Florida, Texas, Washington, Tennessee, and Nevada.

The data revealed that Florida had the most significant gain: 1,786 households - Texas came in second with a net gain of 1,660 young and rich households.

The highest earnings for the young and rich was found in Nevada with and adjusted gross income (AGI) for $731k. Wyoming was second with $612k then Florida at $526k.

Top states for young, affluent adults:

1. Florida
2. Texas
3. Colorado
4. North Carolina
5. Washington
6. South Carolina
7. Tennessee
8. New Jersey
9. Arizona
10. Nevada

Leaving LA before I get taxed for paying my taxes on time.Photo byArron ChoionUnsplash

The stark contrast is seen when you compare those states to California's loss of more than 3000 young and rich households.

"Texas offers job opportunities and relative affordability. Many parts of Texas have been successful [in] building a lot of new housing to better accommodate its new residents," Zillow’s principal population scientist Edward Berchick told FOX News Digital.

The states after California with greatest losses were Illinois: 1,323 households with an approximate loss in taxes of $5.1 billion. Then Massachusetts losing: 1,102 households, and New York fourth with a loss of 345.

Another study, published in April by Hire A Helper, also revealed that millennials are among the highest earners, yet they are also the generation with the second highest level of household debt.

The study by Hire A Helper also says the millennials are choosing the warmer climate cities, as well - similar to retirees.

Tampa, and Jacksonville, Florida ranked the highest net gain of millennial residents in the country in 2023. Las Vegas, Nevada, was ranked between the two with a 52% increase then Austin, Texas with a 42% increase in 2023.

I live in Northern Nevada and I have seen a massive influx of new young and rich residents move here from other states, but primarily they are coming from California.

The new industry complex outside of Reno, Nevada, The Tahoe/Reno Industrial Center, is the largest industrial park in the world. Tesla, Walmart, Petco, and hundreds of other businesses are here, providing thousands of good-paying jobs and helping our state grow and see more young affluent families move here to start a new life.

We will see what happens in California with its myriad of problems:

• Homelessness
• Forest Fires
• Mudslides
• Earthquakes

Just to name a few of the main issues.

California is a beautiful state, with many incredible residents of all ages. However, the dangers of the state are becoming greater each year and the cost of living is outrageous.

Ergo, the question remains; what will the state do to stop the migration to other more affordable cities in the US, leaving the sunny shores of Califiornia far behind?

References:

KTVU Fox 2 - Here’s where the young and rich are moving – and it’s not New York or California | KTVU FOX 2

SmartAsset.com - Where the Young and Rich Are Moving – 2024 Study (smartasset.com)

Peace, Love, and Unconditional Happiness!

I'm Done!Photo byH. Mikel Feilen