I recently read an article based on a study done regarding which states have the highest income mobility. For many people being affluent means having an income over a certain amount and living in a community focused area. What is the amount in income that the study is referring too? The study focuses on typical 30-year-old, earning income slightly greater than their parents did (30 years ago)and upwards to the top fifth percentile for income in the U.S. The study then states that the reasoning behind it is where you live as the primary factor.
The second factor is how involved one is with the community, aka get along with your neighbors as connections are important. If after reading the study based on income mobility, will the information sway people to move in order for their children to hopefully have a better chance to be in a higher income bracket when they are in the work force? It might definitely get me to think twice about where I buy a home in the future. The third factor in the study, towns with great school districts, this factor is very important because many people use this as the primary factor before moving and I totally agree with this because it is the highest criteria I am placing on my home location preference list.
States with the Highest Income Mobility:
North Dakota
Minnesota
South Dakota
Massachusetts
New York
California
Washington
Texas
Almost all the areas are in the northern part of the US with the exception of one state, Texas. I think some of the study is influenced by recent oil booms affecting certain parts of the country. (This is my theory and is not included in the study) But lately I have been reading in multiple media outlets that North Dakota is such a fabulous place to live, and before they found oil there, North Dakota was just another cold state below Canada. Before this study I was interested in moving to Virginia, Delaware, North Carolina, and Florida. After the study I am not at all swayed because if my kids want to be in the highest of income levels then they will move to one of the states above, and I will just visit them once a month because by then I will be retired.
The NY Times Article: Here
The Actual Study
Comment if moving is in the near future for you and what preferences you have with the location prior to moving?
Rich Uncle EL
Well in past I didn't mind moving for a better job, pay and growth prospects. Thanks for highlighting the locations. But right now as an entrepreneur i won't move. Though I guess people relocate for better job prospects
I'm all for California. Great weather, awesome outdoors, and a ton of income mobility (as you mentioned). The economy is vibrant and there are a ton of entrepreneurs bouncing ideas off of each other.