Where are ‘wealthy’ millennials moving? Texas is the place to be, study says
If you’re wealthy and a millennial, Texas is the place to be.
According to the U.S. Census Bureau, the median income for millennials is above the average, $75,000 at $84,000. “But many Millennials eclipse the median, with some households bringing in more than $200,000 per year – earning the classification of “high earners” per the IRS.” according to SmartAsset, a financial technology company.
SmartAsset assessed 2021-2022 tax returns to determine which states accommodate the wealthiest millennials. They tracked the number of millennials with a salary of $200,000 plus moving into and out of states. Texas was placed at No. 2 with a net gain of 5,151 households.
Texas is experiencing a trend of not just millennials moving into the state but really everyone. With no income tax, record-breaking oil and gas, and pioneers of medical research, Forbes says the state has a lot to offer work-hungry adults. According to the United States Census Bureau, Texas welcomes about 395,000 new residents each year.
According to SmartAsset’s study, this is what they found on millennials who make over $200,000 a year.
How many wealthy millennials moved to Texas
SmartAssets determined that Florida and Texas gained the most wealthy millennials. They also found that millennials preferred Georgia and Colorado, “In both states, the number of high-earning Millennial households make up 87% of the net gain of all high-earning households that moved to each,” according to the study findings.
For Texas, this is what they found:
Net gain of wealthy Millennial households: 5,151
Wealthy Millennial inflow: 13,217
Wealthy Millennial outflow: 8,066
Total number of Millennial returns with income $200k+: 261,892
Average AGI for wealthy Millennial households: $469,975
Percent of wealthy households that are millennials: 22.7%
California and New York were the two states with millennials moving out. California had an influx of -9,181 households while New York has a loss of -4,251 households.
SmartAssets also found that Wyoming, Nevada and Arkansas have the largest annual gross income. “On average, the AGI for wealthy millennials in Wyoming is $755,000, compared to $705,000 in Nevada and $679,000 in Arkansas,” according to the study.