When high-income families move, they take their money with them. Therefore, states that attract high-income families often gain more economic advantages. Factors that may prompt high-income individuals to move across states include business opportunities, tax incentives, and other conveniences.
Considering this, SmartAsset analyzed the latest data from the IRS for the 2021-2022 tax year to identify where American households with an annual income of at least $200,000 are moving. The results showed that Florida saw the largest increase in the number of high-income families moving in.
In terms of net inflow of high-income families, Texas ranked second, followed by North Carolina, South Carolina, and Arizona.
Jaclyn DeJohn, the executive editor responsible for economic analysis at SmartAsset, stated that Florida, Texas, Tennessee, Nevada, and New Hampshire all ranked in the top ten states where high-income families are moving, as these states do not levy income tax, which may be a significant driving force for people relocating to these areas.
Economists believe that economic affordability, particularly in terms of housing affordability, may be a contributing factor. According to CNBC, Charlie Dougherty, managing director and senior economist at The Wells Fargo Economics Group, noted that while the influx of high-income families into southern states may drive up housing prices, the housing costs there are still comparatively lower than in other markets.
Dougherty mentioned, “If you look at Texas and Florida, there is still relative affordability, especially in housing, there, it’s a real thing. Especially compared to high-priced Western coastal markets: the Bay Area, Los Angeles, Portland, Seattle, and so forth.”
Moreover, the labor market also needs to be considered. For instance, despite tech industry layoffs in the Austin area, Texas remains one of the better places in the U.S. to find employment, alongside Florida.
The following are the top ten states with the highest net inflow of high-income families:
Net inflow of high-income families: 29,771 households
Average adjusted gross income of high-income families moving in: $907,013
Net inflow of high-income families: 8,260 households
Average adjusted gross income of high-income families moving in: $579,207
Net inflow of high-income families: 5,792 households
Average adjusted gross income of high-income families moving in: $456,384
Net inflow of high-income families: 5,270 households Average adjusted gross income of high-income families moving in: $501,205
Net inflow of high-income families: 4,365 households
Average adjusted gross income of high-income families moving in: $561,112
Net inflow of high-income families: 4,320 households
Average adjusted gross income of high-income families moving in: $586,256
Net inflow of high-income families: 2,589 households
Average adjusted gross income of high-income families moving in: $845,035
Net inflow of high-income families: 2,113 households
Average adjusted gross income of high-income families moving in: $494,497
Net inflow of high-income families: 1,403 households
Average adjusted gross income of high-income families moving in: $590,626
Net inflow of high-income families: 1,104 households
Average adjusted gross income of high-income families moving in: $619,679