Millennials, especially those with a bit more cash, have been on the move lately, and their moving patterns are reshaping America’s economic landscape. A 2024 study from SmartAsset gives us a clear picture of where they are choosing to settle down, and which states they’re fleeing like it’s a game of survival. For this study, SmartAsset took a close look at IRS data from 2021 and 2022 to analyze the net migration of high-earning Millennials across the U.S. They ranked each state by net gain or loss, considering where Millennials are finding opportunities worth sticking around for and where they’re cutting ties.
It’s not just about the allure of new job markets or the appeal of warm, sunny beaches. High state taxes, rising costs of living, and even the impact of remote work are nudging these affluent young professionals to reconsider where they call home. States like California and New York, once the dream destinations for ambitious young adults, are now seeing some of their wealthiest Millennials heading for the hills. On the flip side, places like Florida and Texas are rolling out the welcome mat with low taxes, growing job markets, and more affordable housing options.
Ready to see where they’re going and where they’re leaving behind? First, we’ll look at the top 10 states that wealthy Millennials are abandoning.
1. California
California, the land of tech dreams and sunny beaches, saw a net loss of 9,181 wealthy Millennials. While 14,139 high-earning Millennials moved into the Golden State, a larger crowd of 23,320 packed up and left. The big reasons? Sky-high living costs, steep taxes, and the reality that you can find similar job opportunities in more affordable states without sacrificing your lifestyle.
Housing prices in cities like San Francisco and Los Angeles are astronomical, and that’s a huge turn-off for young professionals, even those making six figures. When faced with million-dollar price tags on modest homes, many Millennials are opting to save their cash and find better deals elsewhere.
2. New York
New York is losing Millennials at an alarming rate, with a net loss of 4,251. Though 11,340 Millennials moved in, an even larger 15,591 said goodbye to the Empire State. For many, the high cost of living in New York City, combined with hefty state and local taxes, makes the Big Apple less appealing for long-term living.
Sure, New York is packed with career opportunities, but Millennials are increasingly looking for places where they can build wealth without draining their bank accounts just to cover rent. Many are finding that life beyond New York offers a better balance between earnings and expenses.
3. Illinois
Illinois, and particularly Chicago, has long been a magnet for young professionals, but it’s now experiencing a net loss of 3,163 wealthy Millennials. With 3,694 moving in and 6,857 heading out, the state’s high property taxes and rising living costs are pushing Millennials to look for other options.
While Chicago has a lot to offer in terms of culture and job opportunities, Millennials are increasingly unwilling to shoulder the financial burden of high taxes and living costs, especially when other states offer similar perks for less.
4. Massachusetts
Known for its prestigious universities and bustling tech scene, Massachusetts is seeing a net loss of 1,927 Millennials. Although 3,683 moved in, 5,610 left, likely due to high housing prices and a high cost of living in cities like Boston. The tax burden is also a factor driving young professionals away.
While Boston’s job market is strong with high-paying positions in healthcare, finance, and technology, the state’s living expenses can quickly eat into those earnings. Millennials are opting for more affordable places where they can maximize both their income and lifestyle.
5. Pennsylvania
Pennsylvania saw a net loss of 609 wealthy Millennials, with 4,492 moving out compared to 3,883 coming in. Philadelphia may offer a lower cost of living than nearby New York, but many Millennials are finding even better deals in other states with more dynamic job markets and lower property taxes.
Pennsylvania’s property taxes are among the highest in the country, which can be a dealbreaker for Millennials looking to build wealth. While the state has its perks, young professionals are moving on to places where their money goes further and they can find an improved quality of life.
6. Minnesota
Minnesota’s cold winters and high tax rates might explain why it lost 365 wealthy Millennials in recent years. The state welcomed 1,399 new Millennials but lost 1,764, who likely left in search of warmer weather and lower tax burdens. While Minneapolis offers strong job prospects, other states offer similar opportunities with better financial incentives.
Millennials are increasingly looking for states that allow them to keep more of their income. For those who love Minnesota’s lifestyle but not the taxes, there are more tax-friendly states with plenty of job opportunities and better weather.
7. Louisiana
With a net loss of 325, Louisiana saw 968 wealthy Millennials move out compared to only 643 moving in. While New Orleans offers unique cultural appeal, the state’s job market and economic challenges make it less attractive for Millennials seeking long-term growth.
High-paying jobs can be scarce in Louisiana, especially in sectors beyond oil and gas. Millennials are moving to states with stronger job growth, economic stability, and the chance to build a better financial future.
8. Washington
Washington State might have no income tax, but it still saw a net loss of 222 Millennials. While 6,605 moved in, 6,827 left, with high housing costs in urban areas likely driving the outflow. For many, the appeal of a tech-driven lifestyle is outweighed by the sky-high cost of living.
Seattle’s job market is booming, but housing prices continue to climb. Millennials are opting for states with similar career opportunities but more reasonable real estate markets, giving them the chance to invest and save rather than just scraping by.
9. Michigan
Michigan experienced a net loss of 189 wealthy Millennials. Although 1,986 moved in, 2,175 left, likely due to limited job growth outside of certain urban areas like Detroit and Ann Arbor. While Michigan is affordable, Millennials are drawn to states with more robust economies.
Michigan has made strides in recent years, but other states offer more career flexibility and better prospects for growth. Many Millennials are finding that they can get more out of life by moving to states with stronger job markets and more modern amenities.
10. Missouri
Rounding out the list, Missouri saw a net loss of 168 Millennials, with 1,341 moving in and 1,509 leaving. Kansas City and St. Louis may be affordable, but Millennials are seeking more dynamic economies where they can thrive both professionally and financially.
Missouri’s affordable living costs are appealing, but for those with high earning potential, it’s not enough. Millennials are looking for places where their income can drive growth, both financially and in terms of quality of life.
On the Flip Side: Top 5 States Wealthy Millennials Are Moving To
While some states are experiencing a net loss of Millennials, others are turning into magnets for these high earners. States that offer tax breaks, affordable living, and booming job markets are attracting Millennials who are eager to build wealth and enjoy a better lifestyle. Let’s get into the top five states that are pulling in wealthy Millennials, and why these states are so appealing to this generation.
1. Florida
Florida tops the list, drawing in 6,188 wealthy Millennials with its sun-soaked beaches, no state income tax, and vibrant job market. Cities like Miami and Tampa are growing quickly, providing career opportunities across tech, finance, and tourism. In total, 11,219 Millennials moved to Florida, while only 5,031 moved out, showing that many view the state as a long-term home.
Florida’s appeal isn’t just about jobs, it’s also about lifestyle. The state offers a mix of urban excitement and easy access to outdoor activities, making it ideal for those who want to balance work with fun. Millennials are also finding that their dollars stretch further here compared to states like New York or California, allowing them to build wealth while enjoying a more relaxed pace.
2. Texas
Texas isn’t just big on land, it’s big on opportunity. With a net gain of 5,151 Millennials, Texas offers affordable living and no income tax, two key factors that make it highly attractive. From the tech hubs in Austin to the bustling cities of Dallas and Houston, Texas has something for everyone. A total of 13,217 Millennials moved into Texas, while 8,066 left, signaling strong overall appeal.
Austin, in particular, has become a tech powerhouse, sometimes dubbed “Silicon Hills” for its influx of startups and tech giants. But it’s not all work in Texas, the state also boasts a rich cultural scene, diverse food options, and an expanding music landscape, making it a top pick for Millennials who crave a little bit of everything.
3. North Carolina
North Carolina is pulling in 1,970 wealthy Millennials, drawn to the Research Triangle and cities like Raleigh and Charlotte. This state attracted a total of 4,978 Millennials while losing 3,008, showing a clear trend toward growth. North Carolina offers a lower cost of living with access to high-paying jobs, particularly in tech, healthcare, and research sectors.
What’s great about North Carolina is its unique balance between modern cities and natural beauty. Millennials are finding that they can have a thriving career while living near beaches or mountains. Plus, with a strong job market and affordable housing, North Carolina is increasingly seen as a top destination for young professionals looking to maximize both earnings and lifestyle.
4. Colorado
Colorado combines a thriving tech scene with stunning natural landscapes, making it a dream for adventurous Millennials. The state saw a net gain of 1,227 wealthy Millennials, with 4,739 moving in and 3,512 moving out. Denver and Boulder are popular choices, offering a blend of outdoor activities and urban amenities that appeal to young professionals.
Beyond job opportunities, Colorado’s culture of sustainability and health resonates with Millennials who prioritize work-life balance. It could be hiking, skiing, or simply enjoying the state’s gorgeous scenery, Colorado provides an active lifestyle and a promising economy, making it a top pick for Millennials with a love for the outdoors.
5. Tennessee
Tennessee wraps up our list with a net gain of 1,197 wealthy Millennials, thanks to its low cost of living and no state income tax. Cities like Nashville are booming, not just in terms of population but also in job opportunities, particularly in healthcare, entertainment, and finance. The state drew in 2,997 Millennials, while only 1,800 moved out.
Nashville’s music scene and cultural vibrancy are significant draws, but other cities like Memphis and Chattanooga are also growing rapidly. With affordable housing and a vibrant arts scene, Tennessee offers Millennials the chance to enjoy a high quality of life while building their financial future. It’s no wonder Millennials are choosing Tennessee as their next big move.
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California’s beaches, New York’s energy, the vastness of Texas – each state embodies a piece of the American dream. But for many across the nation, that dream is fading.
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With an honors degree in financial engineering, Omega Ukama deeply understands finance. Before pursuing journalism, he honed his skills at a private equity firm, giving him invaluable real-world experience. This combination of financial literacy and journalistic flair allows him to translate complex financial matters into clear and concise insights for his readers.
With an honors degree in financial engineering, Omega Ukama deeply understands finance. Before pursuing journalism, he honed his skills at a private equity firm, giving him invaluable real-world experience. This combination of financial literacy and journalistic flair allows him to translate complex financial matters into clear and concise insights for his readers.
