Many young and wealthy Americans are now moving from California to Florida. Although Florida is often seen as a place where people usually retire, things have now changed. Young and wealthy Americans are now moving there. In 2022, Florida, the Sunshine State, gained 1,786 young households. These wealthy households consist of people aged between 26 and 35 who earn at least $200,000 a year.
According to data from the IRS, which was analyzed by SmartAsset, the number of young households moving from California to Florida makes it the state with the highest number of rich young people moving in.
Why Are People Moving to Florida From California?
People are attracted to Florida for various reasons. Some of these reasons include the state’s beautiful beaches, exciting attractions, and the fact that the state does not have an income tax, which helps residents save more money. One example is a 29-year-old anesthesiologist assistant, Chabely Rodriguez. Rodriguez moved from New York to Tampa after finishing her master’s degree in 2021.
Rodriguez now earns over $200,000 a year and enjoys living in Florida.
“I have gotten to do a lot of fun things, and I live a different life than I used to back when I was in New York while earning $210,000 in a year,” she said in an interview in 2023. “Right now in Florida, I have a lot more space, and my money is going a lot further than it used to be. I now enjoy life a little bit more down South.”
ALSO READ: California City Pushes Back Against Electric Vehicles by Reducing Number of Chargers
US States Gaining the Most Young and Wealthy Residents
Four other Southern states, along with Florida, are among the top 10 states where young people who earn a lot of money are moving to. The states include Texas, North Carolina, South Carolina, and Tennessee.
The following states saw the highest number of wealthy households between the ages of 26 and 35 years old move in:
- Florida: 1,786 households moved in
- Texas: 1,660 households moved in
- Colorado: 720 households moved in
- North Carolina: 521 households moved in
- Washington: 383 households moved in
- South Carolina: 372 households moved in
- Tennessee: 347 households moved in
- New Jersey: 300 households moved in
- Arizona: 192 households moved in
- Nevada: 162 households moved in
Why Are Young Wealthy Americans Migrating?
There are many benefits of moving to Florida from places like California. Generally, many young wealthy Americans are leaving states that are expensive to live in. California is one of these expensive states.
It saw the most significant net decline. Over 3,200 more young people who are high earners moved from California to other states including Florida in 2022.
While California has nice weather and a lot of fun activities, even people who make a lot of money can find it hard to afford to live comfortably there. The state is known for being very expensive, especially when it comes to housing, groceries and insurance.
In fact, two adults without children would need almost $30,000 extra every year to live in San Francisco, which is more than they would need in Miami to cover their cost of living. According to estimates from the Economic Policy Institute, their cost of living would include things like housing, food, transportation, taxes, and healthcare.
ALSO READ: Philadelphia Fed President Harker Calls for Interest Rate Cut in September
US States Losing the Most Young and Wealthy Residents
The states that lost the highest number of young and wealthy Americans are spread out across the country. However, five of them are some of the most populated states. These states include California, Illinois, New York, Pennsylvania, and Michigan. The people who are leaving these states might be looking for more space and the cost of living elsewhere, just as Rodriguez mentioned.
In 2022, the following states saw a significant reduction in the number of young, wealthy households. According to data from SmartAsset analysis of IRS data, the following numbers show the net migration of these young households:
- California: 3,226 households left
- Illinois: 1,323 households left
- Massachusetts: 1,102 households left
- New York: 345 households left
- Pennsylvania: 320 households left
- Michigan: 158 households left
- Louisiana: 94 households left
- Delaware: 83 households left
- Minnesota: 70 households left
- Missouri: 66 households left
In general, these states saw more wealthy people moving out than those moving in. For example, over 7,400 wealthy households moved into California, but more than 10,600 left. On the other hand, 3,870 young and wealthy households moved into Florida, but only about 2,000 households left.
While both Texas and New York gained more than 5,000 new rich residents, New York lost more than it gained. This means it had a negative net migration.
You Might Also Like:
Chase Bank Acknowledges Viral ‘Glitch’ Encouraging Check Fraud Attempts
Verizon Acquires Frontier Communications in $20 Billion Deal to Expand U.S. Fiber Network
It’s Official: The 500-Mile Electric Car Is Here
Mortgage Refinance Demand Soars 94% Year-Over-Year as Interest Rates Drop Again