Pennsylvania is losing more wealthy millennials than almost any other state, report finds

More wealthy millennials are moving out of Pennsylvania than nearly every other U.S. state in recent years, according to a new report.

That claim comes from a new report out of financial company SmartAsset, which used data from the U.S. Census Bureau and Internal Revenue Service to see where well-off millennials are moving throughout the country. The report examined data from the 2021 and 2022 tax years, ultimately defining wealthy millennial households as those aged between 26 and 45 earning at least $200,000 annually.

SmartAsset’s report found Pennsylvania saw the fifth-largest net loss in wealthy millennial households over the period studied. The Keystone State reported a total population of more than 13 million people in the 2020 Census, but has seen that figure drop slightly in more recent years, lowering to about 12.96 million as of July 1, 2023, according to agency estimates. Centre County, meanwhile, saw its population increase slightly between 2022 and 2023.

Here’s what you need to know about wealthy millennials moving out of Pennsylvania, plus a look at national trends.

How many wealthy millennials are leaving Pennsylvania?

Pennsylvania observed a net loss of 609 wealthy millennial households during the 2021 and 2022 tax years, according to SmartAsset’s report released in August. The commonwealth reported 3,883 wealthy millennial households moving into the Keystone State and 4,492 moving elsewhere.

According to the report, roughly 103,435 millennials in Pennsylvania filed tax returns making at least $200,000 over that period. The average adjusted gross income checked in at $420,588 for wealthy millennial households in Pennsylvania, who make up roughly 19.6% of the commonwealth’s total wealthy households.

In its report, SmartAsset said the departure of well-off millennials can significantly affect their former communities, though it did not indicate specific reasons the group might be leaving the state.

“These millennials in particular have more disposable income and economic freedom than their median counterparts, so their impact on local economies can be outsized,” the report reads. “When these wealthy millennials choose to move for job opportunities, lifestyle, family and other reasons, their disproportionate economic power also goes with them.”

Although wealthy millennials appear be leaving Pennsylvania more than some other states, the commonwealth remains an attractive destination, according to other studies. A recent WalletHub study ranked the Keystone State as the No. 7 best state to live in for 2024, while Money magazine identified a pair of Pennsylvania cities as some of the best places to live across the U.S.

How does the rest of the country compare?

No state saw a larger net gain of wealthy millennial households in the 2021 and 2022 tax years than Florida (6,188). Texas followed closely behind with a net gain of 5,151 wealthy millennial households, while four other states reported a net gain of at least 1,000 such households.

Conversely, California reported the largest net loss of millennial households over that period. The Golden State, with a population of nearly 39 million, leads the nation and observed a net loss of 9,181 wealthy millennial households, SmartAsset reports.

Here’s a look at the states that saw the largest gain in wealthy millennial households in the 2021 and 2022 tax years, according to Smart Asset:

1. Florida (up 6,188)
2. Texas (up 5,151)
3. North Carolina (up 1,970)
4. Colorado (up 1,227)
5. Tennessee (up 1,197)
6. South Carolina (up 1,068)
7. Georgia (up 895)
8. Arizona (up 668)
9. Idaho (up 606)
10. Nevada (up 510)

These states observed the largest net loss in wealthy millennial households over the reported period:

1. California (down 9,181)
2. New York (down 4,251)
   
   
3. Illinois (down 3,163)
4. Massachusetts (down 1,927)
5. Pennsylvania (down 609)
6. Minnesota (down 365)
7. Louisiana (down 325)
8. Washington (down 222)
9. Michigan (down 189)
10. Missouri (down 168)

Notably, roughly 25% of wealthy households in Utah are millennials, marking the highest clip of any state in the country. No state has a lower such rate than New Mexico, where millennials make up just 15% of all households earning at least $200,000 annually.

The average gross income for wealthy millennial households in Wyoming is about $755,000, SmartAsset reports. That figure leads all states, followed by $705,000 in Nevada and $679,000 in Arkansas.

Visit smartasset.com/data-studies/where-wealthy-millennials-move-2024 to read SmartAsset’s full report, methodology and more.

Matt DiSanto

Centre Daily Times

814-231-4616

Matt is a 2022 Penn State graduate. Before arriving at the Centre Daily Times, he served as Onward State’s managing editor and a general assignment reporter at StateCollege.com. Support my work with a digital subscription