A recent analysis highlights a concerning trend for New York and New Jersey, where both states have witnessed significant losses in resident incomes due to a surge in population migration. According to a report from Unleash Prosperity, New York experienced a staggering loss of approximately $517.5 billion in resident incomes between 2013 and 2022. Meanwhile, New Jersey suffered a loss of around $170.1 billion during the same timeframe.
This report reflects the cumulative income losses as residents leave for other states, impacting the local economy over several years. New York’s losses were notably the highest among all states, while New Jersey ranked fourth. Additionally, California and Illinois also faced steep declines, losing approximately $370.1 billion and $315.2 billion, respectively.
Economist Steve Moore, co-founder of Unleash Prosperity, emphasized the gravity of this situation, noting that these two states have lost nearly two-thirds of a trillion dollars in net income and purchasing power due to residents relocating primarily to lower-tax states in the South. Moore remarked that this downturn is among the most significant wealth losses for any region in American history.
The report also highlights that states like Florida and Texas are seeing the opposite trend, with both experiencing substantial gains in resident incomes, totaling over $1 trillion and $290 billion, respectively.
Moreover, from 2011 to 2022, New York lost almost 1.8 million residents to domestic migration. In contrast, Florida and Texas gained 1.6 million and 1.3 million residents, respectively, showcasing a shift in preference toward states with more favorable economic conditions.
This trend raises important questions about the future viability of New York and New Jersey as attractive places for residents and businesses, especially as economic pressures continue to grow.
