A significant exodus of New Yorkers to Florida has resulted in a substantial economic impact, with more than 125,000 residents relocating to the Sunshine State between 2018 and 2022, according to new findings from the Citizens Budget Commission (CBC). The migration led to approximately $14 billion in adjusted gross income departing the Empire State.
The analysis reveals that Miami-Dade, Palm Beach, and Broward counties attracted roughly one-third of these former New York City residents, approximately 41,251 people, accounting for $10 billion of the lost income. The remaining $3.8 billion was distributed across other Florida regions.
CBC President Andrew Rein emphasized the importance of maintaining competitiveness, noting that residents are seeking more favorable conditions elsewhere. The organization identified several factors driving the exodus, including concerns about affordability, safety concerns, diminished quality of life, and ongoing effects from the pandemic. A telling statistic shows that only 30% of New Yorkers rated city life as “good or excellent” in 2023, representing a significant decline from 50% before the pandemic.
High-income earners were particularly prominent among those departing. Those relocating to Miami-Dade brought average incomes exceeding $266,000, while Palm Beach attracted individuals with average earnings of around $189,000. Connecticut’s Fairfield County drew former New Yorkers with average incomes of $141,000. This trend is particularly concerning given that New York’s top 1% of earners contribute 40% of the state’s income tax revenue.
The migration pattern wasn’t limited to Florida. Surrounding areas in the Northeast also experienced significant inflows from New York City. Long Island gained 138,000 former city residents, resulting in an $11.1 billion reduction in adjusted gross income for the city. Westchester County attracted nearly 60,000 people, representing a $5 billion loss, while Fairfield County’s 31,000 new residents accounted for $4.9 billion in lost income. Bergen County, New Jersey, welcomed over 30,000 former New Yorkers, leading to a $1.8 billion impact.
Total relocations within the Northeast region resulted in a combined loss of $22.8 billion in adjusted gross income and a population decrease exceeding 230,000 residents.
Despite New York experiencing a doubling in its millionaire population between 2010 and 2022, increasing from 36,000 to 70,000, the state’s proportion of U.S. millionaires decreased significantly from 12.7% to 8.7% during this period.
Rein stressed that New York’s ability to compete depends heavily on quality of life and public safety considerations. “The key is with any place you need the benefits to outweigh the cost,” he stated, adding that some individuals found greater value propositions in other locations compared to New York City.
The findings underscore the challenges facing New York as it seeks to maintain its position as a premier destination for residents and businesses. The substantial loss of high-income earners and their associated tax contributions poses particular concerns for the city’s and state’s fiscal health, highlighting the need for strategic measures to enhance the region’s attractiveness and competitiveness.