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Where America's Wealth Is Moving: Florida Gained $20.65 Billion
Florida gained $20.65 billion in net income from people moving in, more than the next four states combined. What the latest IRS data says, and what it leaves out.
Florida gained $20.65 billion in net income from people moving in, more than the next four states combined. What the latest IRS data says, and what it leaves out.
Every year the IRS publishes where tax filers moved and how much income they took with them. The latest release covers people who filed their 2022 return in one state and their 2023 return in another. Florida came out on top again, with a net gain of $20.65 billion in adjusted gross income (AGI). Texas, South Carolina, North Carolina and Tennessee, the next four states on the list, added $16.3 billion between them.
Texas gained slightly more tax filers than Florida, about 56,500 against 55,300. Florida gained almost four times as much income. The difference is who is moving. Florida attracts more households with high incomes and accumulated wealth, many of them from New York, New Jersey and Illinois. The two counties with the largest income gains in the country were both in Florida: Palm Beach (+$3.0 billion) and Collier (+$2.25 billion).
Income that arrives needs somewhere to live, work, shop and eat. Households earning six figures and up rent and buy at the top of the market, and many bring their businesses with them. Lenders, buyers and long-term owners watch these numbers because they come from tax returns, so they measure demand that has already arrived.
These are the latest figures the IRS has released, and they describe moves that happened by early 2023. They say nothing about what has happened since. Florida also has real costs that buyers weigh: property insurance, condo association assessments and, in some markets, more new supply than demand. Statewide totals can hide large differences between neighborhoods, and a strong state will not rescue a bad site or a high purchase price.
Infinity⁹ is based in Miami, and WOMA Wynwood, the project we co-sponsor with Uribe Schwarzkopf, was planned with this buyer in mind. One of the buyer profiles we defined for WOMA is the professional relocating from New York, Chicago or Los Angeles for Florida's taxes and climate. Data like this supports that thesis. The rule we invest by stays the same: your cost is where you make your money. We underwrite each project to work at today's prices and rents, and we treat continued migration as upside.
For another driver of demand in the same neighborhood, read what Carnegie Mellon's new campus means for Wynwood.
It is the adjusted gross income reported by tax filers who moved into a state, minus the income reported by filers who moved out, based on federal tax returns.
Florida, with a net gain of $20.65 billion in the 2022-2023 IRS data, more than Texas, South Carolina, North Carolina and Tennessee combined.
California (-$11.9 billion), New York (-$9.9 billion) and Illinois (-$6.0 billion).
Disclosure: Infinity⁹ is a co-sponsor of WOMA Wynwood and has an economic interest in its sale. Infinity⁹ (Infinity Capital Asset Management, LLC) is an Exempt Reporting Adviser with the SEC, CRD# 330526. This article is educational and does not constitute legal, tax or investment advice, or an offer to sell or a solicitation of an offer to buy any security. Any offering is made only through definitive documents and only to accredited investors.
Ahmad Ashrafi is Founder and CEO of Infinity⁹ in Miami and Chief Investment Officer of A9 Family Office. Since 2012 he has managed capital for Latin American families, today more than 75 families across 10 countries. He studied at Babson College, with specializations at Harvard in family office wealth management and at MIT in real estate investment, and is a member of the Forbes Finance Council.
Infinity⁹ is the commercial name of Infinity Investment Group LLC ("Infinity"), the parent holding company. Investment management is carried out by Infinity Capital Asset Management, LLC, an exempt reporting adviser (CRD 330526), for accredited international investors and high-net-worth individuals. Neither is a broker-dealer or a member of FINRA. Exempt reporting status does not imply a particular level of skill or training.
Past performance is not indicative of future results. Historical returns, expected returns and probability projections are speculative. All investment involves significant risk, including the possible total loss of capital. Infinity does not guarantee that investment objectives will be met.
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