Full Breakdown
Florida Leads U.S. in Wealth Migration Amid Housing Affordability Trends
3/28/2026, 11:50:43 AM
Wealth Gains from Migration
In 2023, Florida emerged as the leading state in the United States for wealth migration, gaining approximately $20.65 billion in annual adjusted gross income from high-earning newcomers, according to data from the Internal Revenue Service (IRS) analyzed by Realtor.com®. This influx of wealth significantly outpaced other states, with Texas following at $5.5 billion, South Carolina at $4.1 billion, North Carolina at $3.9 billion, Tennessee at $2.8 billion, and Nevada at $1.5 billion. Conversely, states with high living costs, such as California, New York, Illinois, Massachusetts, and New Jersey, experienced substantial losses in resident income, totaling nearly $34 billion combined.
Factors Driving Migration
The migration trend is largely attributed to individuals seeking more affordable living conditions. Realtor.com senior economist Joel Berner noted that states like Florida, Texas, Arizona, Idaho, and the Carolinas have excelled in new construction, which helps lower housing prices. In contrast, states like California and New York have struggled to keep up with housing supply, exacerbating affordability issues.
Palm Beach County in Florida was identified as the epicenter of this wealth migration, gaining $3.04 billion in net income from new residents. The average income of taxpayers moving to Palm Beach County was reported at $178,085, nearly double that of those leaving the county, which averaged $98,527.
Demographics of New Residents
The average income of individuals relocating to Florida from other states in 2023 was $122,530, the highest among all U.S. states. Following Florida, Connecticut, New Hampshire, and New Jersey reported average incomes of $100,822, $109,000, and $102,190, respectively. This trend indicates that Florida is attracting a significant number of high-income earners.
Decline in Migration Rates
Despite the substantial wealth gains in 2023, data from the U.S. Census Bureau indicates a slowdown in migration rates. In 2025, Florida recorded a net domestic migration of just 22,517 residents, a dramatic decline of 93% from its peak in 2022. Texas also experienced a decrease, with net migration of 67,299, down 69% from the previous year. This decline suggests that the pandemic may have accelerated migration trends, compressing years of expected movement into a shorter timeframe.
Criticism of Affordability Trends
While Florida and Texas continue to attract new residents, the overall trend raises concerns about housing affordability. States like South Carolina, Idaho, and North Carolina have shown relative growth in migration, attributed to their affordability. In contrast, states with the largest outflows, including New York, Hawaii, Alaska, and California, face ongoing challenges related to high living costs.
Verbatim Quotes
- “This trend from a few years ago is quite similar to the trend we’re still seeing: People are moving in pursuit of affordability,” — Joel Berner, Senior Economist, Realtor.com
- “Florida attracts more high-income earners than any other state,” — Gay Cororaton, Chief Economist, Miami Realtors®
