Wealthy Gen X-ers Are Moving To These States

Baby boomers, ages 55-75, have long been migrating to Southern states as they enter retirement years. Now a new study shows wealthy Generation X, ages 40-54, are doing much of the same.

SmartAsset.com, published a new study reveals how wealthy Gen X-ers are moving to Southern states.

According to the study, six of the top ten states where wealthy Gen X-ers are moving to are in the South, with Washington as the outlier.

Northeast has become widely unpopular with wealthy Gen X-ers. Most of the outflow is coming from Northeast states, four of which are New Jersey, Massachusetts, Pennsylvania, and New York.

To determine the relocation of rich Gen X-ers, SmartAsset examined inflow and outflow data of people ages 35 to 54 with adjusted gross incomes of at least $100,000.

SmartAsset didn’t discuss the cause behind the Gen-Xer exodus from the Northeast. But one of the factors could have something to do with the removal of state and local tax (SALT) deductions, disproportionately affecting high-tax, or Democrat, states (in the Northeast).

This has direct implications on regional housing dynamics as property tax also falls under the cap. Capping the deduction will mean reduced tax incentives for home-ownership. Indirectly, households will want to live in lower-income tax states (in the South) as they approach or enter their retirement years to hang on to more of their savings.