America’s Financial Center Of Gravity Moves South

What’s happening: Over a hundred billion dollars in economic might has shifted out of the Northeast toward six expanding Southern states, Bloomberg reports. Dubbed the "$100 billion wealth migration,” this shift defines the post-pandemic era, with families and businesses in search of new opportunities in red states.

Why it matters: States with a higher population and bigger economy hold more sway over national political priorities. By 2030, red states with booming economies and inward migration could see an uptick in Congressional seats. Arizona, Florida, Idaho and Texas could gain seats while California, Illinois, Minnesota and New York could lose some — cementing new power for the South in the years to come.

What coastal elites? This is the first time in history that the South — encompassed by Florida, Texas, Georgia, the Carolinas, and Tennessee — outflanks the Northeast corridor of Washington-Boston-New York in its contribution to national GDP. Nine out of the top fifteen fastest-growing cities are located in the South, and the Northeast has lost over $60 billion dollars since the pandemic.

Behind the shift: In recent years, companies and families have flocked toward red states in the South seeking the benefits of looser regulation, low taxes, and increased opportunity. This transformation only accelerated during the pandemic as conservative states moved away from lockdowns much faster and shows no signs of reversing.