Take a look income tax rates in New York median cost of a one-bedroom apartment with no natural light, and it’s no wonder why people who can afford it flock elsewhere.
With no state income tax, Florida and Texas are the No. 1 and No. 2 destinations for millennials on the move, according to a report. SmartAsset. Using data from the IRS and tax year 2021, SmartAsset measured the net migration patterns of young professionals ages 26 to 35 (excluding the influx of new high-earning income earners) bringing in at least $200,000 a year. Florida gained 2,175 people in this cohort; Texas won 1,909 net.
Meanwhile, the nation’s largest economies, New York and California, suffered the largest net losses, with 5,062 and 4,495 youth, respectively. But they’re not looking for young blood, as both states are still home to the most low-income youth by far.
This should come as no surprise if you’ve heard any of the anecdotal accounts of what Florida and Texas have become. New York and New California remote workers left their cramped city apartments during the pandemic. Both southern states boast year-round warm weather, wide open spaces, and (of course) no income taxes, perfect for young people who are focused on saving and contributing to retirement accounts first. The state has made them ideal locations for those who don’t need to earn high salaries in offices in Manhattan or San Francisco.
Remote work “It opened the door for more people to move further away from the workplace and live in a new area,” said Randy Ryerson, vice president of marketing and communications for the Penske truck rental company. say luck last year
Of course, some workers also probably tracked their companies there. Such as the financial giants of Legacy New York Blackstone and Goldman Sachs, they have opened and opened offices in Miamiwhile the tech giants like it Tesla and the oracle be He left the Golden State for Lone Star. More Fortune 500 companies they are currently based in Texas more than anyone else other stateHouston being the most popular city of headquarters. The average cost of living in Texas is over $45,000, a 2022 exam found by the Commerce Department’s Bureau of Economic Analysis. That’s $8,000 less than California and New York, the second and third largest Fortune 500 headquarters. luck’s Paolo Confino reported.
SmartAsset’s rankings also reflect that Florida’s continued dominance in this decade; its appeal among young workers may also include its appeal among retirees. After all, Florida has it 2.7% unemployment rateBelow the national rate of 3.5%, and more room for your money. “I really liked the amenities, the pools, the gyms, the things you couldn’t get back home,” said Harshneel More, a 30-year-old software engineer who moved to Tampa from San Francisco in 2021 and kept his Bay Area salary. —he said to him Tampa Bay Times.
But HENRY’s (short for high earners, not rich yet) those who have packed up shop aren’t just heading to the South, where four of SmartAsset’s top 10 list states are located. They are also fleeing to New Jersey, which gained 1,048 newly affluent young professionals, and to Connecticut, which gained 660. Trieste’s reputation the field suggests that many remote workers are not commuting far, moving out of the city to a cheaper location but still commuting to the office. Washington State, seventh on the list with 464 net gains, has the highest proportion of high-earning youth; 13% of state residents earning more than $200,000 are between the ages of 26 and 35.
Here are the top 10 cities where young professionals move, ranked by net income:
- Florida (2,175)
- Texas (1,909)
- New Jersey (1,048)
- Colorado (754)
- North Carolina (721)
- Connecticut (660)
- Washington (464)
- Tennessee (441)
- Arizona (321)
- South Carolina (318)
Read more about housing trends luck.com:
A version of this story was originally published on Fortune.com on August 24, 2023.
