Florida tops U.S. in attracting high-income households, new SmartAsset study says
Florida attracted the most high-income households — those making over $200,000 a year — in the U.S. between 2020 and 2021, a new study shows.
The Sunshine State saw a net increase of 27,500 high-income households — after subtracting the 12,567 that moved out from the 40,134 that moved in - according to financial technology company SmartAsset.
Over 1,200 people a day are moving to Florida, making it first in domestic migrations and second in international migrations. Nearly 444,500 people moved here from July 2021 to July 2022.
The main reason for the influx is the lack of state income tax, the study says. But its outdoor lifestyle also became attractive during the coronavirus pandemic, and remote work allowed people to relocate here.
Where are people moving to and from?
Florida outpaced Texas, which ranked second with 22,751 new households, and North Carolina, which ranked third with 11,437.
Seven of the top 20 states people are flocking to are in the Southeast: Florida, North Carolina, South Carolina, Tennessee, Georgia, Alabama and Arkansas.
California lost the most high-income households, with 36,751 leaving in 2021. That’s becoming an annual trend for the Golden State, where only 15% earn over $200,000, according to Income By Zip Code.
New York ranked second with 29,562 lost. Illinois, Massachusetts, New Jersey and Pennsylvania also saw many people leave. These states have the highest percentage of high-earning households.
After factoring in taxes and the cost of living in San Francisco and New York City, $250,000 annual wages are worth only $83,000, SmartAsset reported in June.
About 25% of consumers who earn $200,000 or more annually live paycheck to paycheck but are able to pay their bills, according to a June 2022 report released by LendingClub Bank, a leading U.S. digital bank.
This article originally appeared on Treasure Coast Newspapers: Florida tops U.S. in new high-income households, SmartAsset says
