According to a new SmartAsset study, wealthy millennials are moving to the coasts, but the Northeast isn't one of them.
To determine migration flows of wealthy millennials, SmartAsset examined data (IRS 2015 to 2016 tax year) from all 50 states and the District of Columbia. To calculate net inflow of each state, the study used inflow minus the outflow of wealthy millennials to find precisely which states wealthy millennials are moving to.
Seventy percent of the states in the top ten list of where wealthy millennials are moving to are located on the East and West Coast. With Texas on the Gulf Coast, and Colorado and Tennessee in the Heartland.
Wealthy millennials are abandoning the Northeast: Five of the bottom ten states (Pennsylvania, Massachusetts, Virginia, Illinois, and New York) are located in the Northeast with some of the most significant outflows.
About 4,900 wealthy millennials left New York during the one year, with 10,048 moved into the state, while 14,915 fled the state, for a total net migration of -4,867.
California had the highest net migration of +3,597, was the top ranking state where wealthy millennials were migrating to. Next was Washington state; it had a net migration of +1,920. Texas was third with +1,878, and Colorado was fourth with +1,506.
Even less wealthy millennials, stuck in the gig-economy with insurmountable debts, aren't flocking to New York anymore.
A SmartAsset study from 2018 showed New York didn't even make the top 25, but rather Seattle, Washington; Columbia, South Carolina; and Sacramento, California, were some of the top spots where non-wealthy millennials were moving to.
For millennials as a whole, migration trends of 2020 could result in a massive exodus of Northeast states, a move that would lead to economic stress in the region as baby boomers would drain the local economy. There will be a point where states, counties, and even cities will offer some type of incentive to attract millennials.