Florida has long been one of the world’s top destinations for folks planning vacations, retirements, and relocations. And now, according to the financial technology company SmartAsset, that relocation group includes younger, wealthier work professionals.
The Florida Realtors organization recently noted a SmartAsset study which utilized 2021 Internal Revenue Service data. Researchers discovered the Sunshine State is the current top destination for the relocation of high-earning Millennials. The Pew Research Center defines Millennials as people born from 1981 through 1996 — ages 27 to 42 for this discussion.
The younger professionals examined in the SmartAsset study — ages 26-35, per the study’s findings — make a minimum of $200,000 per year. Boosted by their financial status, this group appears to be exiting higher-cost-of-living areas and seeking warmer climates with more favorable economies and high-tech industries.
The 2021 IRS statistics in the SmartAsset study revealed that California and New York were the two states that lost the most residents ages 26-35 who earned an annual minimum of $200,000. Their top relocation destination is Florida, followed by Texas, New Jersey, Colorado and North Carolina, respectively.
We at ICI Homes unpacked the highlights below.
Why is it significant that wealthier Millennials appear to favor Florida as a relocation destination? They comprise the second-largest home-buying demographic in today’s residential real estate market, trailing only Baby Boomers.
Millennials are young enough to be revving up careers, but also old enough to have entered their prime home-buying years as they start families. That usually means leaving renting and roommates behind.
Another factor? The post-COVID-19-pandemic trend of being able to work from home, or be a remote or flexible worker, continues for all ages of home buyers, allowing younger, wealthier Millennials to live where they’d like.
Florida’s perennial attractiveness
Buying a new custom Florida home requires a significant financial investment even with a minimum annual income of $200,000. Many millennials likely want to make their dollars work harder than they could in more expensive locales, so the IRS data trail uncovered by SmartAsset researchers foreshadows Millennial migration to states where those dollars go further.
Per the findings from SmartAsset’s examination of 2021 IRS data, Florida had an influx of 2,175 people between the ages of 26 and 35 who filed high-income tax returns for that year. And don’t think those younger, wealthier Millennials weren’t aware that Florida is one of nine states with no state income tax. That’s a major perk for all Floridians!
Also critical? A new custom Florida home generally is a better buy — even with interest-rate-angst — than in many areas of the country. Per Florida Realtors, real estate statistics at the close of the third quarter of 2023 show an average single-family home price of $400,000 statewide, and an average townhome or condo price of $325,000.
And, let’s not forget that Florida’s year-round temperate climate, tropical beauty, and outdoor recreation options draw visitors and new residents alike — all the time!
Ready for your new custom Florida home? Talk to ICI Homes here.