Top 5 States Where Rich Millennials Are Buying Homes, According to Real Estate Agents
Written by
Andrew Lisa
Edited by
Joe Evans
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According to Newsweek, millennials are driving a trend of young, self-made millionaires who break the mold of the traditional trust fund baby. Instead of relying on inherited wealth and old money, rich millennials are much more likely to have earned, hustled and saved their way to wealth than the young millionaires of previous generations.
And, their unique needs and wants lead many of them to settle down in the same handful of states.
GOBankingRates spoke with two real estate pros, one who outlined what drives affluent millennials to the states they’re disproportionately flocking to and another who revealed where they’re going.
How Do Rich Millennials Choose Their New Home States?
Like everyone else, millennials base major decisions like moving out of state on their unique life circumstances — but those circumstances tend to revolve around the same core concerns.
“One major factor that attracts wealthy millennials to a particular state is the availability of job opportunities,” said Mary Sullivan, founder of Company That Buys Houses. “As a generation that values career growth and advancement, they are often drawn to states with strong economies and thriving job markets.”
They also care about affordable housing, even if they have the cash to splurge.
“Contrary to popular belief, wealthy millennials aren’t always looking for luxurious mansions or high-end properties,” Sullivan said. “Many are seeking more affordable housing options, especially compared to other major cities where real estate prices may be significantly higher.”
Another concern is the lifestyle they’ve worked so hard to afford.
“This can include factors such as outdoor activities, cultural events and overall quality of life,” Sullivan said.
Finally, they consider the same concern that weighs on every rich person — taxes.
“Some states offer tax benefits for high-income earners, making them more attractive to this demographic,” Sullivan said. “Overall, the trend of wealthy millennials moving to certain states showcases their desire for job opportunities, affordable housing options, preferred lifestyles and potential tax benefits. As a real estate agent, it is important to keep these factors in mind when working with this generation of buyers.”
So, Where Are They Going?
Keith Sant is a real estate agent, land developer, home design enthusiast, investment advisor and founder and CEO of Kind House Buyers in Tacoma, Washington.
He has noticed rich millennials taking their hefty salaries and enviable savings to a handful of states that the young and wealthy seem to favor.
California
The Golden State has lured generations of dreamers, but in the modern era, you need a lot of money to keep a West Coast dream alive.
“The state of California is a popular destination for rich millennials due to its vibrant economy and diverse culture,” Sant said. “Many tech companies, like Google, Facebook and Apple, are headquartered in California, creating job opportunities for young professionals. Additionally, the state has beautiful beaches, scenic national parks, and a thriving arts scene that appeals to the lifestyle of wealthy millennials.”
New York
Like California, living in New York is a dream for many — and one that stays out of reach for most due to its prohibitively high price.
“New York is another top choice for rich millennials, particularly in cities like New York City and the borough of Brooklyn,” Sant said. “The state offers a bustling urban lifestyle with access to top-notch restaurants, luxury shopping, and exclusive clubs. It also has a strong job market, especially in finance and technology industries, making it an attractive destination for young professionals seeking high-paying jobs.”
Texas
The Lone Star State is experiencing a massive influx of people and money, with rich millennials driving much of the growth in both population and wealth.
“Texas has become a popular state for wealthy millennials due to its low cost of living and business-friendly environment,” Sant said. “Cities like Austin and Dallas have seen an influx of young entrepreneurs and tech workers, drawn to the opportunities for growth and development. Additionally, Texas does not have a state income tax, allowing wealthy individuals to keep more of their earnings.”
Colorado
Life in the picturesque Mountain West has gotten pricey, too — an obstacle that high earners can overcome.
“Colorado has become a hotspot for rich millennials, particularly in cities like Denver and Boulder,” Sant said. “The state offers a perfect balance between urban living and outdoor recreation, with access to ski resorts, hiking trails and other outdoor activities. It also has a growing job market in industries such as tech, healthcare and energy.”
Florida
Older people have long flocked to Florida with their nest eggs, but the young aren’t waiting for their golden years to bring their wealth to America’s favorite retirement haven.
“Florida has always been a popular destination for retirees due to its warm weather and retirement communities,” Sant said. “However, in recent years, it has also become attractive to wealthy millennials seeking a luxurious lifestyle. Cities like Miami and Palm Beach offer upscale dining options, luxury shopping opportunities, and exclusive entertainment venues that cater to the affluent population.”
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