Advisors prospecting for new clients need to follow the money, and these days wealthy millennials are on the move, according to SmartAsset, a personal finance technology company in New York City.
SmartAsset says the most recent comparative IRS migration data available, for the years 2017 and 2018, reports that 30% of U.S. taxpayers younger than age 35, with adjusted gross incomes of at least $100,000, are filing returns across state lines because of moves to a different state address. That trend is particularly pronounced in New York State, where the country's largest city has for years attracted young transplants in search of fame and fortune.
SmartAsset found in its second annual study that between 2017 and 2018, more wealthy millennials were leaving New York State than moving there. The Empire State, home to the Big Apple, reported that 11,395 wealthy millennials moved there during those years, while 16,928 of them left, leaving a net migration loss of roughly 5,533—the highest outmigration rate reported in the study.
The 2020 pandemic has only hastened that exodus from the state's namesake largest city, according to the New York Times, which in May reported that thousands of New York City residents, in particular those from the city’s wealthiest neighborhoods, left with the outbreak of Covid-19.
Many of the state’s younger, wealthier residents are in search of greener pastures out west and down south, SmartAsset says, but not all millennials are departing the Northeast just because they are leaving New York City.
Here, in ascending order, are SmartAsset’s top 10 states where wealthy millennials are moving.
10. Tennessee
Tennessee, home to the late baby boomer icon Elvis Presley, is attracting a new generation of rich, young transplants. Between 2017 and 2018, the Volunteer State reported that 2,625 wealthy millennials had set up residence in Tennessee, while 2,130 left, leaving a net migration of 495, the majority (97.78%) between the ages of 26 and 34.
9. Arizona
Well-off retirees are not the only generation to have discovered the the joys of living in the Grand Canyon State. A net of 509 high-earning millennials moved to Arizona between 2017 and 2018. About 71% of them earned between $100,000 and $200,000 annually, with the remaining third earning in excess of that amount.
8. Idaho
The natural beauty of Idaho is timeless, but millennial Americans on the move want to enjoy it while they’re young. The Gem State attracted a net inflow of 531 wealthy millennials between 2017 and 2018. During those years, more than 900 wealthy millennials moved to Idaho, while fewer than 400 left.
7. Oregon
Wealthy millennials tired of breathing smog and craning their necks to avoid looking at skyscrapers are flocking to the Beaver State, where rugged natural beauty costs nothing to view. From 2017 to 2018, a net migration of 677 wealthy Millennials ages 26 to 34 moved to Oregon.
6. New Jersey
Just because wealthy millennials are leaving the Big Apple doesn’t mean they’re abandoning the Northeast. Between 2017 and 2018, there was a net migration of 746 millennials earning at least $100,000 who changed their address to the Garden State. In fact, close to 500 of them earned $200,000 or more—the second-highest gross net migration of millenials in that income bracket, SmartAsset says.
5. North Carolina
Wealthy millennials in search of high-paying jobs need look no further than North Carolina, where the state’s Research Triangle is anchored by technology companies, medical centers, academia and government offices. Between 2017 and 2018, there was a net migration of 700 wealthy millennials earning between $100,000 and $200,000, and 202 earning more than $200,000.
4. Florida
Old and young alike prefer no taxes to low taxes, so its no wonder the Sunshine State, one of nine U.S. states with no income tax, attracts almost as many wealthy millennials as it does rich retirees. Between 2017 and 2018, about 6,000 high-earning millennials moved to Florida, while fewer than 5,500 left, for a net migration of 1,100 rich, young consumers.
3. Texas
An emerging tech hub, the Lone Star State offers young newcomers low-cost living and plentiful, high-paying jobs. Between 2017 and 2018, Texas boasted a net migration of 1,804 wealthy millennials under 35, with incomes of $100,000 or more.
2. Colorado
Home to the U.S. Olympic Committee, Colorado is a magnet for successful athletes in their prime, as well as young entrepreneurs in search of an opportunity. Between 2017 and 2018, Colorado reported a net migration of 1,808 wealthy millennials, 73% of them earning between $100,000 and $200,000 annually, and the remaining 27% pulling in even more.
1. Washington
With a booming economy and job market, coupled with cultural diversity and progressive views, this left-leaning, left-coast state draws rich, young transplants from all over the country. Between 2017 and 2018, 7,310 millennials making at least $100,000 a year moved to the Evergreen State, while 4,753 left, for a net migration of 2,557 wealthy millennials—the highest of any state and the District of Columbia.
