January 15, 2015

NJ sees increase in people leaving state

Baby boomers, millennials expected to flee in coming years

Trends Cost Of Living
01152015_TollNJ_AP Mike Derer/AP

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Studies show that people are increasingly moving out of New Jersey, and will continue to do so, according to the Courier-Post. 

Demographers predict a more significant loss of residents over the next several years, particularly among baby boomers and millennials. 

According to James Hughes, a demographer and Rutgers University dean, people are leaving the state at a rate higher than 47 other states, just behind New York and Illinois.

"They're all prime candidates for retirements and are perhaps looking for affordability," Hughes said. "We could see a huge increase (of migration out of New Jersey) going forward."

A study by United Van Lines supports Hughes' findings. It showed that about 65 percent of New Jersey's moves are outbound, the highest percentage in the nation. 

According to U.S. Census data, New Jersey's population is not declining. Rather, its makeup is adjusting. As people left the state between 2010 and 2014, they were replaced by foreign-born and U.S.-born individuals, as well as U.S. armed forces members from overseas.

The increase in residential moves could be a result of the state's high cost of living and lack of jobs.

According to the Courier-Post story:

Demographer Hughes said for many retirees, moving out of New Jersey — away from a high cost of living in general — is an economic no-brainer. High property taxes, transportation tolls and inheritance taxes are all financial disincentives for aging New Jerseyans.

By the end of 2015, baby boomers born between 1946 and 1964 will be between 51 and 69 years old.

"They're all prime candidates for retirements and are perhaps looking for affordability," Hughes said. "We could see a huge increase (of migration out of New Jersey) going forward."

IRS State Outflow 2010-11 data shows that the top destinations of those leaving New Jersey are Pennsylvania, California, Florida and North Carolina.

New Jersey is not alone, however. People are leaving the Northeast in general, the Courier-Post reports.

Read the full story.