Young, affluent Americans are leaving places like New York and California for more affordable living in Florida and Texas. But Washington is the best place to find the highest concentration of wealthy young people.
This is according to a recent analysis by SmartAsset, which based on the latest published IRS statistics from 2021, shows that people between the ages of 26 and 35 who earn at least $200,000 per year in adjusted gross income It's a pattern study.
Washington state has more than twice the average proportion of young high-income earners. 13% of those earning more than $200,000 are between the ages of 26 and 35, compared to the national average of 5.7%.
The state is slightly ahead of California, where 10% of high-income earners are young professionals. New York, Massachusetts, and New Jersey also have high proportions of young people with high incomes.
Washington's young and affluent demographic is fueled by Seattle, where early career workers can earn big bucks in high-wage tech and health care fields. And Washington is one of the few states that doesn't impose a state income tax on its residents.
Jaclyn DeJong, managing editor of economic analysis at SmartAsset, says living in Seattle can be a trade-off for living in other expensive coastal cities.
Prices in Seattle are 44% higher than the U.S. average at the beginning of 2023, but compared to living in Manhattan and San Francisco, where prices are 122% and 70% higher than average, respectively, “Seattle's prices may be a relief,” DeJong said. says. .
After cost-of-living insurance and taxes, a $200,000 salary would be about $102,707 in Washington, but only $72,297 in Manhattan and $78,283 in San Francisco, she added.
Elsewhere in the United States, Florida recently recorded the largest net migration of 2,175 young, affluent newcomers. Texas saw the second-largest wave of young, affluent new residents with 4,048 people moving in one year, but it also saw a large exodus, with 1,909 net migrants arriving in the state. stayed.
New Jersey, in third place, gained 1,048 new wealthy young professionals, even as wealthy people of all ages left the state at high rates.
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check out: Young, wealthy workers are fleeing New York and California, and this is where they're headed.
