High-Earning Americans Are Staying Put, But When They Move, They’re Headed South
While America’s middle class flocked to Florida last year, high earners are taking a more diverse approach to relocation, with a notable trend towards the Southern states. A new analysis of Census Bureau data by HireAHelper.com shows that households earning $150,000 or more a year are the least likely to move, with only 6.5% relocating in 2023. This is significantly lower than the 9% relocation rate observed among those in the bottom 20% of earners, who make $30,000 a year or less.
Key Takeaways:
- High Earners Stay Put: Households in the top 20% of earners are the least likely to relocate, likely due to factors like homeownership and established roots.
- Long-Distance Moves: When high earners do move, they’re more likely to go farther, with 19% moving out of state compared to 14% of low-income households.
- Southward Shift: Five of the top 10 metros with the largest net population gains of high earners are located in Florida, Texas, and Tennessee.
- Housing Motivation: The desire for new or better housing is the most common reason high earners move, though affordability plays a much smaller role compared to lower-income groups.
- Job-Related Moves: A significant proportion of high earners (12%) cite new jobs or job transfers as their reason for relocating.
The South’s Growing Appeal
The trend of high earners moving to the South is driven by several factors. These states often offer a combination of lower cost of living, strong job markets, and favorable tax environments. The Sunshine State particularly attracts high earners, with Deltona-Daytona Beach-Ormond Beach and North Port-Sarasota-Bradenton being among the top metros with the highest net population growth of high earners in 2023.
The Desire for Upgraded Housing
While affordability is a major driver for lower-income households, it plays a less significant role for high earners. Instead, upgrading to better housing is the most common reason for relocation among this income group. This suggests that high earners are seeking larger homes, more amenities, or more desirable locations, even if it means staying in the same county.
Job Transfers and New Opportunities
Another significant factor driving relocation among high earners is job-related moves. This includes job transfers within companies and seeking new opportunities in different markets. The South is home to numerous growing industries attracting high-earning professionals, further fueling the migration trend.
The Influence of Homeownership
Homeownership plays a considerable role in determining relocation patterns. Higher earners are more likely to own their homes, resulting in a lower likelihood of moving compared to renters. This reinforces the stability observed among high-earning households, as homeownership can be a significant investment that requires significant consideration before relocating.
A Diverse Migration Landscape
The relocation trends among high earners demonstrate a complex and nuanced picture. While affordability remains a crucial factor for many Americans, high earners are driven by a mix of motivations, particularly upgraded housing and career opportunities. This trend towards the South indicates a shift in American demographics, with regions like Florida, Texas, and Tennessee increasingly attracting high-earning professionals and families.
Looking Ahead: Continued Growth in the South
As the economy evolves and job markets continue to grow, the trend of high earners migrating towards the South is likely to persist. This trend will shape the demographics of these states and influence their social, economic, and political landscapes. As high earners increasingly opt for better housing, career opportunities, and lower costs of living, the South is poised to become a hub for growth and prosperity in the years to come.