Where rich millennials are moving in 2019

Becca Stanek, CEPF®
Updated

A number of factors can influence your decision to move to a new place, including where your peers are headed. While some older generations like rich retirees and rich Gen Xers are moving to Florida, wealthy millennials are still seeking out sunny locales, but in other states. In recent years California, home of Silicon Valley, has been a relatively popular destination for people who are younger than 35. By contrast, data shows that this demographic is exiting New York in droves – the state had a net outflow of 4,867 wealthy people under the age of 35 from 2015 to 2016. However, its neighbor across the Hudson River, New Jersey, made it into the top 10 cities in our study of where rich millennials are moving.

To determine where wealthy millennials are moving, we considered the inflow and outflow of this demographic to each state. We defined millennials as people under the age of 35 and looked specifically at millennials with adjusted gross incomes (AGI) of at least $100,000. For further information on how we compiled this list, read our Data and Methodology section below.

Key Findings

  • Rich millennials are moving to the coasts. Seven of the states in our top 10 are either on the East Coast or the West Coast. With Texas on the Gulf Coast, that makes Colorado and Tennessee the only landlocked states in the top 10.

  • The Northeast isn’t popular with wealthy millennials. Save for New Jersey, which made the top 10, the Northeast isn’t a popular destination for the wealthy under 35. Five of the bottom 10 states (Connecticut, Maryland, Pennsylvania, Massachusetts and New York), plus the District of Columbia, are located in the Northeastern region of the U.S.

Data and Methodology

To determine where rich millennials are moving, we looked at data from all 50 states, as well as the District of Columbia. We defined rich millennials as individuals under the age of 35 who have adjusted gross incomes of $100,000 and above. More specifically, we looked at the following two metrics:

  • Inflow of rich millennials: This is the number of millennials with adjusted gross incomes of at least $100,000 who moved into the state. For this study, we defined millennials as people age 35 and under. Data comes from the IRS and is for 2015-2016.

  • Outflow of rich millennials: This is the number of millennials with adjusted gross incomes of at least $100,000 who moved out of the state. For this study, we defined millennials as people age 35 and under. Data comes from the IRS and is for 2015-2016.

To rank the states, we determined each state’s net inflow of rich millennials. This is the inflow minus the outflow. We then ranked the states according to net inflow in descending order.

Tips for Buying Your First Home

  • Budget before all. If you’re a millennial thinking about becoming a homeowner, it’s important to make sure you stay within your budget. After all, you don’t want your mortgage payments to derail saving for retirement or totally deplete your emergency funds. SmartAsset’s home affordability calculator makes it easy to determine how much you can realistically spend on a house based on factors like your annual income, debt and location.

  • Get some wise advice. When you go through a big life event like buying a home, it’s a good idea to talk to a financial advisor. An advisor can help you figure out how a home purchase will fit in with your other financial objectives. This in turn will help you make sure you stay on track to achieve your long-term goals. SmartAsset’s financial advisor matching tool makes it easier to find a financial advisor in your area who meets your needs. Simply fill out a brief questionnaire and then we’ll match you with up to three financial advisors.

Questions about our study? Contact us at press@smartasset.com

Photo credit: ©iStock.com/monkeybusinessimages

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