Young wealthy Americans are now flocking to Florida, defying its conventional image as a retirement destination.
According to an analysis of IRS data. by SmartAsset, Florida emerged as the top destination for wealthy Americans aged 26 to 35, with a net gain of 1,786 young households earning at least $200,000 in 2022. This makes it the state with the highest net migration of affluent individuals in that age group.
Americans of all income ranges are still attracted to Florida’s beautiful sandy beaches, amazing attractions, and the fact that it doesn’t have a state income tax.
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“I’ve had the opportunity to experience a multitude of enjoyable activities and embrace a completely different lifestyle compared to my time in New York,” she shared with CNBC Make It in 2023, with an annual income above $210,000. “Living down South has provided me with ample space, greater financial flexibility, and a heightened sense of enjoyment in life.”
California offers some of the best weather and entertainment options in the country, rivalling even those of Florida. However, for many Americans, including high-earners, maintaining a comfortable lifestyle in the Golden State can be a financial challenge. The cost of necessities such as housing, groceries, and insurance in California is notoriously high.
According to estimates from the Economic Policy Institute, two adults without children would require an additional $30,000 per year in San Francisco compared to Miami to meet expenses for housing, food, transportation, taxes, healthcare, and other essential needs.
According to SmartAsset, the following states experienced the biggest decrease in the number of young and affluent households in 2022.
Migration in these states occurred on a much larger scale compared to the states that attracted young, affluent residents.
In terms of attracting young wealthy individuals, both Texas and New York experienced an influx of over 5,000 new residents. However, New York had a higher number of people leaving, resulting in a negative net migration.
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