New York and New Jersey are undergoing a major economic transformation as they face a massive outflow of residents’ income. Countless individuals and families are relocating to states with more favorable tax environments. This decade-long migration wave has caused enormous financial losses for the two northeastern states, while places like Florida and Texas have emerged as major beneficiaries, attracting both people and their purchasing power.
A recent comprehensive analysis highlights the harsh reality of this exodus. Between 2013 and 2022, New York alone experienced a staggering $517.5 billion loss in residents’ income. Neighboring New Jersey also suffered significantly, losing $170.1 billion over the same period. These figures represent cumulative income taken by movers to their new states over subsequent years—demonstrating an ongoing, expanding financial impact rather than a one-time relocation. In total, New York and New Jersey have lost nearly $690 billion in household income from their economies over the past decade.
Economists warn of the scale of this financial hemorrhage, describing it as one of the greatest regional wealth losses in American history. Experts argue that New Jersey and New York are being heavily drained as residents move to southern states offering lower taxes and often cheaper living costs—taking their economic contributions with them.
Southern States Thrive as Wealth and Population Shift Redefine America’s Economy
This trend isn’t confined to the Northeast. Other economically strong states have also felt the pressure. For example, California recorded a $370.1 billion loss in residents’ income, while Illinois saw a $315.2 billion decline during the same ten-year span. This broader pattern points to a nationwide redistribution of wealth and population, driven largely by economic considerations and tax policies.
Conversely, some states have reaped enormous benefits from this migration. Florida stands out as the biggest winner, gaining slightly over $1 trillion in residents’ income between 2013 and 2022. Texas also experienced a major boost, with an increase of $290 billion. Known for their low tax rates and warmer climates, these states have become magnets for those seeking economic opportunity and a different lifestyle.
Beyond the financial figures, the migration reflects a major demographic shift. From the 2011–2012 to 2021–2022 tax filing periods, New York lost a net 1.757 million people due to domestic migration. California followed with a loss of 1.632 million, Illinois 881,012, and New Jersey 350,111 residents. These population shifts exacerbate the economic impact, influencing everything from housing markets to local services and political representation.
The ongoing movement of Americans—and their financial resources—is redrawing the nation’s economic landscape. For New York and New Jersey, understanding and addressing the root causes of this mass migration of people and wealth will be critical for their future economic vitality. The ripple effects of this continuous migration are being felt across multiple sectors, posing both challenges and opportunities throughout the country.