Where Are the ‘Rich’ Millennials Flocking To?

Wondering about an influx of well-heeled millennials, you’re not imagining things. High-earning millennials with net worth of over $200,000 a year have been leaving the bustling states like New York and California, according to a recent analysis. And it’s not just a staycation; it's a full-on migration. But where are they going? And what does this mean for the states they’re leaving and the ones they’re moving to?

North Carolina is the New Hot Spot

North Carolina, known for its charming cities and burgeoning tech scene, has become a major destination for these high earners. According to reports, the Old North State ranks third in the nation for net migration of affluent millennials, ages 26 to 45, with a net gain of 1,970. This places it just behind Florida, which gained 6,188 such households, and Texas, which welcomed 5,151. 

But why North Carolina? The answer is a mix of job opportunities, lifestyle, and lower living costs. On average, these households in North Carolina earn $430,957 annually and represent 20.2% of all households earning $200,000 or more in the state. This influx of wealthier residents brings a wave of disposable income, driving local economies and supporting businesses ranging from real estate to retail. 

When these millennials choose to move, they don’t just bring their earnings; they bring their spending habits. Their preferences for high-quality services, and their demand for luxury housing. 

Is California and New York’s Appeal Fading?

While states like California and New York are watch their wealthy millennials pack up and leave. California took the biggest hit with about 9,181 households moving out, New York lost 4,251. These states, once magnets for ambitious young professionals, are now losing them to regions with lower taxes, more affordable real estate, and perhaps a less frenetic pace of life. 

There are varied reasons for these exits, right from the high cost of living to skyrocketing housing prices and taxes. In the present day and time the reasons for moving out also go beyond materialistic issues like escaping the traffic and density for a place with more space and a slower pace. Whatever the motivation, the trend is clear: many are voting with their feet and their wallets. 

The Broader Migration Picture

We can't forget what's happening at the borders. The latest IRS data from 2021 and 2022, compared the inflow and outflow of qualifying households in each state, considering the average adjusted gross income (AGI) for these wealthy millennials. Not surprisingly, states like Texas and Florida, both known for their business-friendly climates and lack of state income tax, topped the list for attracting high earners. 

Meanwhile, other states such as Colorado and Georgia also saw significant gains. Colorado gained 1,227 wealthy millennial households, making up 87% of the total net gain of all high-earning households that moved in. Georgia saw 895 of its 1,024 net new high-earning households being millennials. These numbers suggest that beyond just tax considerations, millennials are looking for a blend of lifestyle benefits and economic opportunities. 

Are Utah and Washington the Unexpected Winners?

In a surprising twist, Utah boasts the highest percentage of wealthy households that are millennials—25% of all households earning over $200,000 a year. Meanwhile, Washington State is not far behind, with millennials making up 24.6% of high earners. These states might not immediately come to mind as destinations for wealthy millennials, but they offer a unique mix of outdoor lifestyle, lower cost of living, and growing tech hubs.

What’s Next?

Looking ahead, this trend could reshape the economic landscape of many states. As these high earners settle into new areas, their economic impact could be profound, potentially leading to increased demand for services, new businesses, and even shifts in political landscapes.  

In the long term, the movement of this economically powerful demographic might signal a broader shift in where future generations choose to live and work. As remote work continues to offer flexibility, and as more states compete for talent with tax incentives and lifestyle perks, the next few years could see even more dramatic changes in these migration patterns. 

For now, if you’re a state looking to attract these valuable residents, it might be time to take a page from North Carolina’s playbook: offer affordability, opportunity, and a high quality of life. The future, after all, belongs to those who can make a compelling case to the most mobile and economically influential generation yet. Stay tuned for more news and updates, and don't forget to subscribe!