An estimated 5 million Americans move from one state to another every year. When residents leave a state, they not only take their families, they also take their financial resources.
According to a new Bloomberg analysis of federal data, Florida, South Carolina, and Idaho are enjoying the top economic gains from state-to-state migration, while Connecticut, New York, and Illinois are experiencing the biggest financial drains. In 2016 — the most recent year available — Connecticut’s “leavers” cost that state the equivalent of 1.6% of its annual adjusted gross income (AGI), while Florida took in $17.2 billion more than it lost due to migration, boosting its AGI nearly 2.9%.
The Midwest and Northeast are losing the most residents with high incomes and net-worths. In 2016, Ohio lost of $1.8 billion (0.54% of AGI) due to inter-state migration — seventh worst among the states.
Meanwhile, a study by the Cato Institute contends that high income earners are far more mobile when it comes to relocation. The migration rate for those earning between $50,000 and $200,000 per year is 1.4%, while those earning over $200,000 have a migration rate of 2.1%, Cato reported. 6/4/2019