Wealthy millennials flee California and New York for southern red states: new study

A new study shows that wealthy millennials (Gen Y) are ditching blue states on the east and west coasts to make a new life in conservative-run southern states. Those who are between the ages of 26 and 45 with a household income of $200,000-plus per year are fleeing California and New York in droves, and are heading to Texas and Florida where their money can be stretched further to ensure more financial stability, according to a Smart Asset survey. 

An analysis of the most recent tax return data from 2021 and 2022 shows that California experienced the greatest departure of high-earning Gen Y households, with a net loss of 9,181. New York experienced the second-largest net loss, with a loss of 4,251 households.

While 14,139 affluent millennials relocated to California, the data shows that 23,320 departed. New York lost more wealthy millennials than it gained, with 11,340 new residents arriving in the Big Apple while 15,591 decided to leave. Both of these states have among the nation's highest costs of living, and with inflation being a top issue even those who can afford the means are looking for new areas where their money could be stretched further, the New York Post reported.

The median income for this age group in the United States is $84,000 annually. The report states that when people in this economic bracket move to states with lower levels of wealth, it can have a disproportionate impact on local economies. Florida experienced a net gain of 6,188 wealthy millennials, while Texas received 5,151. North Carolina followed with 1,970, per the study.