Rich millennials are fleeing California and New York for these sun-soaked states

Thousands of wealthy millennials are abandoning California and New York for sunny states like Florida and Texas, a new study has revealed.

SmartAsset, a personal finance company, analyzed 2021 and 2022 US tax return data to figure out the migration patterns of millennials, who are now in their late twenties to early forties.

Southern states attracted by far the most millennial households who earn $200,000 or more - the IRS definition for high-income taxpayers - with nearly 6,200 of them moving to Florida and more than 5,100 relocating to Texas.

These Millennials in particular have more disposable income and economic freedom than their median counterparts, so their impact on local economies can be outsized, SmartAsset managing editor Jaclyn DeJohn said. 

When these wealthy Millennials choose to move for job opportunities, lifestyle, family and other reasons, their disproportionate economic power also goes with them. 

Florida gained the most wealthy millennial households at 6,188 (pictured: Miami)

Texas attracted the second most at 5,151 (pictured: Houston)

Almost 2,000 high-earning households in this age group moved to North Carolina.

Colorado, Tennessee and South Carolina rounded out the top six, with each of the states gaining over 1,000 households each.

Plenty of western states had positive gains as well, with Arizona, Idaho and Nevada rounding out the top ten.

Those who relocated had to come from somewhere. 

California, home to liberal cities Los Angeles and San Francisco, had the greatest net outflow of wealthy millennial households, losing just over 9,000.

More than 4,200 New York households also fled South and West for better opportunities.

Illinois, home to the countrys third largest city, Chicago, lost more than 3,000.

California saw a marked population decline throughout the pandemic before posting a moderate gain in 2023 (pictured: Los Angeles)

Illinois also lost many wealthy millennials over the last several years (pictured: Chicago)

Population shifts inevitably happen in all countries. 

From the early 1800s to the 1960s, New York was the undisputed most populous state. 

California overtook New York in 1964 and has been the most crowded ever since.

New York dropped back to third place in 1994, when Texas surged past 18.1 million people. Florida later surpassed the Empire State.

A February study from moveBuddha projected that Texas and Florida would be the first and second biggest states, respectively, by 2100, followed by California, Georgia, North Carolina, and New York.

California has been steadily losing hundreds of thousands of citizens since 2019, before posting a moderate gain in 2023.

Many exiting Californians cite high cost of living and poor quality of life as reasons why they left the Golden State

Nearly half of the people moving out of California in 2021 were millennials . Many of them headed to Texas counties around major cities such as Houston, Dallas and Austin (pictured)

Many cite high cost of living and poor quality of life as reasons why they left the Golden State. 

Data has shown nearly half of the people moving out of California in 2021 were millennials. Many of them headed to Texas counties around major cities such as Houston, Dallas and Austin. 

Florida, like Texas, has also had a population boom, with more than 700,000 people moving there in 2022.

The fact that Texas and Florida dont levy income taxes on their citizens is a major pulling factor from California and New York, both of which have top marginal rates over 10 percent.

Still, there are some major drawbacks that could slow these states march to dominance.

For one, both Texas and Florida have been hit with dramatically more natural disasters in the last 10 years, according to data from the National Oceanic and Atmospheric Administration.

Mike Isbell climbs a ladder to look at the remains of his home which was destroyed in Surfside Beach, Texas, on July 8, 2024, after Hurricane Beryl made landfall

Buildings sit along the coast line as the rain and storm surge from Tropical Storm Debby inundate a neighborhood in Cedar Key, Florida

Hurricane Francine didnt make a direct impact on Texas this week, but the state was lashed by Hurricane Beryl in July, leaving 2.7 million houses and businesses without power in the immediate aftermath.

Months earlier in May, tornados ripped through northeastern Texas, Arkansas and Oklahoma, killing at least 24 people.

Florida, too, was hit by Tropical Storm Debby in August. A year earlier, Hurricane Idalia laid waste to its sandy shores and caused $3.6 billion in damages.

Certain housing markets in Florida also show signs of cooling, thanks in part to rising costs, with Miami losing a net total of 50,000 residents in 2023, according to Mansion Global.