Wealthy millennials are leaving blue states on both coasts for red states in the South by the thousands, according to a new study.
Millennials — those between the ages of 26 and 45 — who bring in $200,000 or more a year as households are fleeing California and New York in large numbers while more and more are moving to Florida and Texas, according to a Smart Asset analysis.
California saw the largest departure of high-earning Gen Yers with a net loss of 9,181 households, and New York saw the second largest with a net loss of 4,251 households, according to the analysis of the latest tax return data from 2021 and 2022.
The Golden State had 14,139 wealthy millennials move into its borders but saw more — a total of 23,320 — leave.
Similarly, New York gained 11,340 new wealthy millennial residents but lost 15,591, according to the study.
Both states have some of the highest costs of living in the country and even the affluent can stretch their money further in other parts of the country where the cost of living and taxes can be lower.
For example, Florida and Texas drew in the most affluent Gen Y members.
Florida had a net gain of 6,188 wealthy millennials and Texas had a net gain of 5,151. North Carolina was next with 1,970.
The median income among millennials in the United States is approximately $84,000 per year.
Those earning $200,000 or more “have more disposable income and financial freedom than their median counterparts, so their impact on local economies can be outsized,” the report notes.
As they pick up and move states, “their disproportionate economic power also goes with them,” the report’s author said.