New York has lost almost $1 trillion as asset management companies head to the Sun Belt.
Between early 2020 and 2023, 158 companies that manage $993 billion in assets moved their headquarters out of New York, according to data compiled by Bloomberg. Texas and Florida have received an influx of companies leaving California and New York — and the economic boom that comes with it.
Florida welcomed 104 companies, 56 of them from New York, in the same period. Since 2017, the sunshine state has welcomed 86% more corporations that moved their headquarters to the state, compared to those that left, according to a June report by moving company Hire A Helper using Securities and Exchange Commission filings. Texas saw the second-highest net gain, at 71%.
Corporations that have moved to Florida in the last few years include Icahn Capital Management, ARK Investment Management, Citadel and DoubleLine, Bloomberg reported. In the past year, Texas notably welcomed Hewlett-Packard and Caterpillar Inc., according to Hire A Helper’s report.
“The Sun Belt is continuing to change — no longer just a place of traditional industries like oil and gas, no longer just focused on tourism, or just focusing on the retirement community,” Amy Liu, the interim president of the Brookings Institution, told Bloomberg. “These pandemic moves sort of reinforce that the major metros in these states are certainly becoming a destination for new industries.”
The exodus from California and New York will no doubt put a strain on those states' economies, per Bloomberg’s report, with thousands of high-salaried jobs gone, lost tax revenue and empty office buildings.