Governing published a stunning statistic about Travis County in its review of the 2011-2012 migration data released earlier this month by the IRS. Mike Maciag pointed out in The Counties Where Wealthier People Are Moving that Travis County ranked second nationally in the amount of net income gained as a result of people relocating–i.e. income of people moving in minus income of people moving out. Travis County at #2 ranked among some of the most popular retirement destinations in the country, including Palm Beach County (#1) and Collier County (#3) in Florida, as well as Maricopa County (Phoenix) in Arizona (#4). Travis County gained net adjusted gross income in the amount of approximately $1.1 billion in 2011-2012, a truly stunning figure, especially when compared to wealthy enclaves for retirees, where migrating net worth tends to be a one-way trip.
Stunning, that is, until the IRS released the 2012-2013 data yesterday.
Net adjusted gross income flowing into Travis County in 2012-2013 totaled about $2.3 billion, more than double the amount for 2011-2012, and nearly all (97%) of it came from people moving to Travis County from other states. I’ll wait for Governing to update their interactive to see where Travis County ranks nationally for 2012-2013, but based on a quick check of Palm Beach County and a few others from 2011-2012, I’m guessing Travis County will be at or near the top of the list again.
A few other observations from the 2012-2013 release:
An estimated 68,664 households and 115,006 people moved to Travis County in 2012-2013, up by at least 35% from 2011-2012. Accounting for people moving out, net migration added an estimated 26,883 households and 41,210 people to the Travis County population in 2012-2013, according to IRS data. Changes in methodology at the IRS prevent us from comparing the 2011-2013 data to previous years. But I’ve been watching this data for Travis County since 2005 and this is the first time we’ve been anywhere near 100,000 movers.
Florida has surpassed California as Travis County’s most significant donor state. Historically, Florida consistently ranked in the top five, but always well behind California. Now, Florida is well ahead, which leads me to believe that there may be something quirky going on with the IRS data. Perhaps the change in methodology has fixed a historic undercount for Florida. Whatever the case, net migration from Florida added an estimated 6,647 households and 9,695 people to the Travis County population in 2012-2013, compared to just 2,092 households and 4,278 people from California. Net transfer of wealth was also much greater from Florida compared to California. Travis County gained approximately $1.1 billion from Florida movers, compared to just $261 million from California. Estimated adjusted gross income per household for Florida residents moving to Travis County in 2012-2013 was $128,509, compared to $98,979 for California households.
Speaking of California, Austinites might have to find another scapegoat, at least when it comes to blaming the state for driving population growth. In addition to Florida, California also trailed New York in net migration to Travis County for both 2011-2012 and 2012-2013, and Georgia wasn’t far behind in 2012-2013. However, you are likely still safe in blaming Californians for driving up housing costs, or perhaps thanking them for fueling Austin’s love-affair with high-priced foodism, whichever way you prefer to look at it. With an estimated average adjusted gross income of $98,979 per household, Californians moving to Travis County have relatively higher incomes than movers from other states sending significant numbers of residents to Austin, with the exception of Florida ($128,509).
Consistent with previous years, in-state movers had little impact on Travis County’s net increase in population due to migration, according to IRS data. Virtually the same number of people moved into Travis County from other counties in Texas as moved out. Travis County’s net gain in population resulting from migration can be attributed almost entirely to people moving to Travis County from other states.
For questions about the IRS data, see my recent primer on migration. I’d be interested in your thoughts on Florida in the comments section. Some have speculated a recent influx of retirees to Austin.