ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Here Are America’s Best Destinations for Young Wealth Builders; Massachusetts Tops the List

Many wealthy young Americans are moving from expensive places like New York and California to expensive states like Florida and Texas.
PUBLISHED APR 5, 2024
Cover Image Source: America's best destinations for young wealth builders (representative image) | Photo by Nout Gons | Pexels
Cover Image Source: America's best destinations for young wealth builders (representative image) | Photo by Nout Gons | Pexels

The average income per state in the United States varies from state to state. The Census Bureau’s 2022 American Community Survey puts the median annual household income at $74,755 but the households in states with the lowest median incomes earn about $50,000 less than those with higher median incomes. New Jersey and Maryland had the highest median household incomes of all states, per the data. Between 2021 and 2022, five states—Alabama, Alaska, Delaware, Florida, and Utah—showed a notable increase in real median household income; 17 states showed a decline.

Image Source: Photo by jimmy teoh | Pexels
Median household income varies across American states (representative image) | Photo by jimmy teoh | Pexels

The U.S. Census Bureau calculates average household income by considering the total income of all people aged 15 or older living in a household. This includes a variety of factors such as wages, salaries, unemployment benefits, disability expenses, child support, rental income, personal services, etc. If you have to guess where the wealthiest people in the United States live, you will imagine wealthy cities like Silicon Valley or New York City. You may be surprised to learn that Massachusetts has the highest average income in the country. In 2023, the Bureau of Labor Statistics estimates that the average income in that area will be $60,690 per year (per NBC Los Angeles), reflecting gross income.

While the typical annual salary for workers in Washington DC exceeds $84,450, Massachusetts has the highest overall income. People in Massachusetts make more money for a variety of reasons. Biotechnology and engineering, known for creating good-paying jobs, is booming. Also, major universities like Harvard University and the Massachusetts Institute of Technology are producing more high-income earners, which could help push up the nation’s average salary. 

Image Source: Photo by MART  PRODUCTION | Pexels
People in Massachusetts make more money (representative image) | Photo by MART PRODUCTION | Pexels

Many wealthy young Americans are moving from expensive places like New York and California to expensive states like Florida and Texas. But if you want more rich young people, Washington, D.C. is the place to go. A recent study by SmartAsset using IRS data for 2021 examined the average annual adjusted gross income for people between the ages of 26 and 35 who earn at least $200,000. Washington stands out for having twice the average number of high-income young people. In Washington, 13% of those earning more than $200,000 are between the ages of 26 and 35, above the national average of 5.7%, per CNBC Make It.

In this respect, Washington outperforms California slightly, and 10% of top earners are young professionals. Other states like New York, Massachusetts, and New Jersey have impressive percentages of high-income young people.

Cities like Seattle, where early career entrepreneurs can earn big bucks in the growing technology and healthcare sectors, are key contributors to Washington’s successful young population. It is also a desirable destination for individuals who are looking for financial benefits because it is not subject to federal income tax. Hawaii is the only state—except for the District of Columbia—that has a higher average annual cost of living than Massachusetts, according to the Missouri Center for Economic Research and Reporting.

MORE ON MARKET REALIST
The guest said that she doesn't even let her children play with the toys to preserve them.
5 hours ago
The item might have been worth more, but no one had any idea of how much it could sell for.
1 day ago
Mr. Wonderful did not hold anything back as he even called the entrepreneurs bad at marketing.
1 day ago
The player couldn't believe that she had aced the "Grand Game" of the show.
1 day ago
Cuban beat offers from Lori Greiner and Kevin O'Leary to add the company to his portfolio.
1 day ago
Rick Harrison wanted to pay less than a thousand bucks at first, but the guest was a tough negotiator.
2 days ago
The contestant had a good start to the game but things did not end all that well.
2 days ago
The guest inherited the jewels from her mother and then found out that they were Cartier products.
2 days ago
The host Pat Sajak was seen standing with a broom while the contestant was celebrating.
3 days ago
The contestant wasn't able to match the excitement with his performance.
3 days ago
The guest said that there was so much more that she hadn't even brought to the show.
3 days ago
This wasn't the first time that an appraisal by an expert worked in favor of the seller.
3 days ago
The contestant seemed to be going through the emotions even before the results were revealed.
3 days ago
As per the guest, even her father had no idea where the piece of jewelry came from.
4 days ago
The contestant was supposed to name a deceased artist who they'd like to see perform as a hologram.
4 days ago
The shoes were apparently the same ones Ali wore in the iconic Thrilla in Manila fight in 1975.
5 days ago
The guest had no idea about the value of what he possessed and was concerned about it being fake.
5 days ago
This was perhaps one of the cruelest Bonus Round puzzles that the show has seen in a while.
5 days ago
The woman also shared her personal opinion about effect of flavorings on the brain.
5 days ago
The 51-year-old will have Hollywood star Matt Damon as partner, and Jimmy Kimmel as host.
6 days ago