The idea of a mass exodus from California in recent years has mostly been disproven, but a new study shows that a certain segment of the state’s population may be more likely to flee than others.
More wealthy millennials — defined as households of those aged 26 to 45 making more than $200,000 a year — are leaving California than anywhere else in the country, according to a recent SmartAsset report analyzing 2021 and 2022 tax return data. The Golden State lost a net of 9,181 of these wealthy millennial households in that time period, more than double the next biggest loss, which happened in New York.
The high cost of living, coupled with many businesses leaving California, likely led to this shift, Jaclyn DeJohn, managing editor at SmartAsset, told SFGATE via email. “It’s likely that such economic incentives as costs, taxes, and regulation will continue to drive shifts in demographics as long as there are disproportionate benefits between California and other states,” DeJohn wrote.
New York lost a net 4,251 wealthy millennial households, while Illinois lost 3,163 and Massachusetts lost 1,927.
Florida and Texas gained the most wealthy millennial households, with a net gain of 6,188 and 5,151 households respectively.