Here’s Where the Young and Rich Are Moving – And It’s Not New York or California

FILE: Rodeo Drive in Beverly Hills, California.Photo by(Credit: David McNew/Getty Images)

Disclaimer: This article was written with the help of A.I. software.

A Surprising Shift in Migration Trends

A new study reveals that a significant number of affluent young Americans are relocating to unexpected destinations, bypassing traditional hotspots like New York and California. According to data analyzed by SmartAsset, these young and wealthy individuals, aged between 26 and 35 and earning at least $200,000 per year, are increasingly choosing states that offer lifestyle upgrades, better job opportunities, and favorable tax conditions.

Top Destinations for the Affluent Young

• Florida: The Sunshine State saw the highest net gain, with 1,786 wealthy young households making the move.
• Texas: Close behind, Texas attracted 1,660 affluent young individuals.
• Colorado: Ranking third, this state also witnessed a significant inflow.
• North Carolina
• Washington
• South Carolina
• Tennessee
• New Jersey
• Arizona
• Nevada

Half of the top 10 states attracting these wealthy young adults do not impose state income taxes. These include Florida, Texas, Washington, Tennessee, and Nevada. Among them, Nevada stood out, with the young and rich earning an average adjusted gross income (AGI) of $731,000. Wyoming and Florida followed, with AGIs of $612,000 and $526,000, respectively.

States Losing Their Young and Wealthy Residents

On the other side of the spectrum, California experienced a sharp decline, losing over 3,000 young, affluent households. Illinois and Massachusetts followed, with net losses of 1,323 and 1,102 households, respectively.

The New Preferred Destinations

This trend reflects a broader shift among younger generations, including Gen Z and millennials, who are favoring locations outside of traditional urban centers like New York City and Los Angeles. A Zillow analysis earlier this year confirmed that Texas gained the most Gen Z movers year-over-year, with cities like Austin emerging as key attractions. Edward Berchick, Zillow’s principal population scientist, noted, "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."

Conclusion

The migration patterns of young, wealthy Americans are undergoing a significant transformation. While states like Florida and Texas are reaping the benefits of this shift, traditional powerhouses like California and New York are witnessing a notable exodus. This trend not only reflects changing economic and lifestyle preferences but also highlights the evolving priorities of the younger, affluent generation.

Source: fox4news