Wealthy New Jersey Residents Are Fleeing the State in Droves
New Jersey has long been a desirable place to live, work, and raise a family. But in recent years, the state has been losing a significant number of wealthy residents. According to a study by the Sunlight Policy Center of New Jersey, a think tank, New Jersey lost a net total of 202,356 taxpayers from 2010 to 2019, taking $24.6 billion with them. This represents a loss of about 1% of the state's population and 2% of its income.
The study also found that the number of millionaires leaving New Jersey was twice the number of millionaires moving in. This trend is likely to continue, as New Jersey faces a number of challenges that are driving wealthy residents away.
Why are wealthy New Jersey residents leaving?
There are a number of reasons why wealthy New Jersey residents are leaving the state. (and are often the reasons why the common folk of the Garden State leave too!) Some of the most common reasons include:
High taxes: New Jersey has some of the highest taxes in the country, including a high income tax, property tax, and sales tax. This can be a major burden for wealthy residents, who often have to pay a significant amount of taxes.
Cost of living: New Jersey is also one of the most expensive states to live in, due to high housing costs, healthcare costs, and other expenses. This can make it difficult for wealthy residents to afford to live in the state.
Traffic congestion: New Jersey has some of the worst traffic congestion in the country, which can make it difficult to get around. This can be a major inconvenience for wealthy residents who often have busy schedules.
Crime: New Jersey has a higher crime rate than some other states. This can be a concern for wealthy residents who are looking for a safe place to live.
Weather: New Jersey has a humid climate, which can be uncomfortable for some people. This can be a factor for wealthy residents who are looking for a more temperate climate.
Where are wealthy New Jersey residents going?
The Sunlight Policy Center study found that the most popular destinations for wealthy New Jersey residents who are leaving the state are Florida, Pennsylvania, and North Carolina. These states all have lower taxes, lower cost of living, and less traffic congestion than New Jersey.
Some of the famous wealthy people who have left New Jersey in recent years include:
Jon Bon Jovi: The rock star and his wife, Dorothea Hurley, moved to Florida in 2018. They had previously lived in Red Bank, New Jersey, for many years. Bon Jovi is worth an estimated $410 million.
Bruce Springsteen: The singer-songwriter moved to New York City in 2020 after living in Colts Neck, New Jersey, for many years. Springsteen is worth an estimated $500 million.
David Tepper: A hedge fund billionaire, Tepper moved to Florida in 2016 after living in New Jersey for over 20 years. He is now the owner of the Carolina Panthers NFL team. Tepper is worth an estimated $15 billion.
David Zaslav: The CEO of Discovery, Inc., moved to Florida in 2021 after living in New Jersey for many years. Zaslav is worth an estimated $4 billion.
Paul Fireman: The founder of Reebok, Fireman moved to Florida in 2022 after living in New Jersey for many years. Fireman is worth an estimated $2 billion.
The mass exodus of wealthy New Jersey residents is a complex issue with no easy solutions. However, the state can take steps to make itself more attractive to wealthy residents, such as reducing taxes, lowering the cost of living, and improving transportation. By taking these steps, New Jersey can stop the exodus and keep its wealthy residents in the state.
