In a trend that highlights the ongoing shift in America’s political and economic landscape, high-earning millennials are leaving progressive, high-tax blue states like California and New York in droves and are heading to red states in the South. According to a recent study by Smart Asset, these affluent individuals—millennials earning $200,000 or more annually—are flocking to states like Florida and Texas, where they can stretch their hard-earned dollars further and enjoy more economic freedom.
The exodus from blue states is staggering. California, often touted as a liberal utopia, saw a net loss of 9,181 wealthy millennial households. New York, another bastion of progressive policies and sky-high taxes, wasn’t far behind with a net loss of 4,251 households. In stark contrast, red states are reaping the benefits. Florida saw a net gain of 6,188 wealthy millennials, while Texas welcomed 5,151. Even North Carolina, a purple state with conservative leanings, gained 1,970 wealthy millennial households.
What’s driving this migration? The answer is simple: lower taxes, a lower cost of living, and a better quality of life. For all the talk about progressive policies benefiting the middle class and working families, it’s clear that even wealthy millennials—often liberal themselves—are opting out of the high-tax, high-cost environments of blue states. California and New York have long been criticized for their exorbitant housing costs, crippling taxes, and overregulation, and now they are losing the very people who help drive their economies.
In California, for example, 23,320 wealthy millennials packed up and left, while only 14,139 moved in. Similarly, New York saw 15,591 households leave compared to just 11,340 arriving. These states are hemorrhaging their high-income residents, and with them, a significant source of tax revenue and economic activity. The liberal policies that dominate these states may be driving away precisely the demographic that provides the most economic support.
Meanwhile, red states like Florida and Texas offer these millennials something they can’t find in blue states: freedom. Freedom from suffocating taxes, freedom from excessive regulation, and freedom to enjoy the fruits of their labor. Florida’s lack of a state income tax, coupled with a lower cost of living, makes it an attractive option for those seeking to maximize their disposable income. Texas, with its business-friendly environment and booming economy, is similarly appealing.
The impact of this migration goes beyond the individual. As the report notes, millennials earning $200,000 or more annually have disproportionate economic power. When they leave high-tax states like California and New York, they take that economic power with them, often to states where their money goes further and benefits the local economy more. This shift could have long-term political and economic implications, as red states grow wealthier and more influential while blue states grapple with the consequences of losing their high-earning residents.
The message is clear: progressive policies, high taxes, and overregulation are driving away the very people who can afford to leave. Red states, with their lower taxes, pro-business environments, and more affordable living, are the big winners in this migration. As more millennials recognize the benefits of moving to these states, we can expect this trend to continue, reshaping the political and economic map of America for years to come.
