Where the Young and Rich Are Moving – 2024 Study

🌈 Abstract

The article discusses the trend of young and affluent individuals (aged 26-35 with annual incomes of $200,000 or more) relocating to certain states, and the impact this has on local economies and politics. It analyzes IRS data to identify the states that are gaining or losing the most of these high-earning young households.

🙋 Q&A

[01] Key Findings

1. What are the key findings from the analysis?

• Florida and Texas attract more than double the young and rich households as any other state, with Florida gaining 1,786 and Texas gaining 1,660 net young and rich households.
• Despite net losses of high-earners across all ages, the young and rich are moving to states like Florida, Texas, Washington, and New Jersey.
• Half of the states attracting the most young and rich households don't charge state income tax.
• California, Illinois, Massachusetts, and New York are among the states that lost the most young and rich households.
• Nevada has the highest average adjusted gross income (AGI) for young and rich households at $731,000.

[02] Top 10 States Gaining Young and Rich Households

1. What are the top 10 states that gained the most young and rich households?

• Florida
• Texas
• Colorado
• North Carolina
• Washington
• South Carolina
• Tennessee
• New Jersey
• Arizona
• Nevada

2. What key metrics are provided for each of these top 10 gaining states?

• Net migration of young and rich households
• Outflow of young and rich households
• Inflow of young and rich households
• Total young and rich tax returns filed
• Average AGI of young and rich households in the state

[03] 10 States Losing Young and Rich Households

1. What are the 10 states that lost the most young and rich households?

• California
• Illinois
• Massachusetts
• New York
• Pennsylvania
• Michigan
• Louisiana
• Delaware
• Minnesota
• Missouri

2. What key metrics are provided for each of these top 10 losing states?

• Net migration of young and rich households
• Outflow of young and rich households
• Inflow of young and rich households
• Total young and rich tax returns filed
• Average AGI of young and rich households in the state

[04] Data and Methodology

1. What data and methodology were used in this analysis?

• The analysis used the latest IRS data from the 2021 and 2022 tax years.
• It focused on households aged 26-35 with adjusted gross incomes of $200,000 or more, considered "rich" households.
• The inflow and outflow of these high-earning young households were compared across states to determine the net migration.
• The average AGI for each state's young and rich households was also calculated.