Rich millennials are leaving Washington faster than almost any state, new study finds

Wealthy millennials are leaving Washington at a higher rate than almost any other state, according to a new study.

Financial insights website SmartAsset used nationwide tax data to figure out where millennials with an annual income above $200,000 are moving, and Washington was not one of their top choices. While 6,605 high-earning millennial households moved to the state between 2021 and 2022, 6,827 left. Its overall loss of 222 high-earning millennials was the eighth-highest of any state.

States wealthy millennials are leaving

As for the other states that wealthy millennials are leaving, California took the top spot with a net loss of 9,181 households, followed by New York and Illinois. Here’s the entire top ten:

1. California

2. New York

3. Illinois

4. Massachusetts

5. Pennsylvania

6. Minnesota

7. Louisiana

8. Washington

9. Michigan

10. Missouri

Despite the loss, Washington remains one of the most wealthy millennial-heavy states in the country. Washington retained 144,475 millennial households making over $200,000 a year – among the highest figures in the country. 24.6% of all high earners in Washington are millennials, the second-highest rate of any state, trailing only Utah at 25%.

States wealthy millennials are moving to

So, where are wealthy millennials actually moving to, if not Washington? According to the study, the states seeing the highest influx of high-earning millennials are:

1. Florida

2. Texas

3. North Carolina

4. Colorado

5. Tennessee

6. South Carolina

7. Georgia

8. Arizona

9. Idaho

10. Nevada

Florida’s net gain of high-earning millennial households was 6,188, over a thousand more than runner-up Texas, who had a net gain of 5,151. These households earn $551,114 per year on average in Florida, and $469,975 in Texas.

However, these states still have many high-earning millennials influencing their economy. The percentage of wealthy households that are millennials is still generally between 15% and 25%. Utah and Washington are on the high end of this spectrum, while many of the states millennials are moving to are still on the low end.

To determine these rankings, SmartAsset looked at numerous factors relating to millennials’ moving patterns. This includes IRS data for 2021 and 2022 (the most recently available) for households between ages 26 and 45 making $200,000 or more. The net migration of these “high-earning households,” using IRS standards, was determined by comparing the inflow qualifying households in each state to the outflow. Additionally, the average AGI for each states’ households within these criteria was considered.

This story was originally published August 29, 2024 at 5:00 AM with the headline "Rich millennials are leaving Washington faster than almost any state, new study finds."