Southeast Experiencing Significant Wealth Migration

In the past two years, the Southeast has had roughly 2.2 million people move to the region from other parts of the country. Six of the fast-growing states in the South – Florida, Texas, Georgia, North and South Carolina, and Tennessee – are contributing more to the national GDP than the Northeast for the first time in history. This shift occurred during the pandemic and there are some who believe that it will not return to the previous position. Based on data from the Internal Revenue Service, the influx of new residents into the Southeast brought about $100 billion in new income in 2020 and 2021, while the Northeast lost roughly $60 billion in that same time period. In addition, the region has accounted for more than two-thirds of all job growth across the United States since 2020, which almost doubled its pre-pandemic share.

In addition to individuals moving south, businesses and corporations are also moving. States and cities in the Southeast have offered cash and tax incentives that make it worthwhile for them to relocate. Warmer weather, lower taxes, looser regulation, and cheaper housing have always brought in companies and retirees, but the South is now seeing this on a much bigger scale. As JPMorgan Chase CEO Jamie Dimon told Bloomberg TV, “We now have more employees in Texas than New York state.”

South Carolina is seeing the effects of the recent wealth migration in both individuals and corporations. Employment in the Charleston metro area grew by 5.9% last year, which was twice as fast as the national average. The state also saw a record $10.1 billion worth of capital investment from companies planning to locate or expand in the state in 2022. In addition, SC’s GDP has increased to over $226 billion, an increase from $221 billion the previous year.