Which NJ Counties Gained, Lost Most Income In Pandemic Migration?

NEW JERSEY — As people left major New Jersey metro areas during the pandemic, they took their income with them — with high earners leaving many large urban areas across the United States between 2020 and 2021, a new report found.

Rural counties benefited most from the migration of people — and earnings — from major cities, according to report released Aug. 8 by the Economic Innovation Group.

"The exodus of workers and families from major U.S. cities during the first two years of the pandemic was exceeded by an even larger outflow of income," said the EIG in their report, which was compiled using federal tax data.

One major metro area in New Jersey lost more than a billion dollars in taxable income as high-earning residents left, the study showed.

Overall, the EIG analysis shows that people left major New Jersey metros — especially closer to New York City — and moved into Shore communities or into the northwestern portion of the state.

The federal income tax base in large urban counties fell by more than $68 billion between 2020 and 2021 from net migration (people moving from place to place) alone, the report said. Meanwhile, the net growth in adjusted growth income (AGI) in rural counties totaled more than 1.5 of existing residents' taxable incomes, the study said.

The EIG said that this loss of income in urban counties could have long-lasting impacts "on issues, including, but not limited to, local housing markets, demand for retail in urban cores, and the fiscal sustainability of public services operated by local governments," if not reversed.

Which counties had the largest differences in money, as people moved in or out?

Patch analyzed the EIG study to determine which counties had the largest annual change in adjusted gross income, based on net migration in 2020 and 2021.

In New Jersey, Hudson County had the biggest percent change and the biggest dollar change overall. The most densely-populated county in the state lost $1.58 billion in taxable income after high-earning individuals and families left in 2020 and 2021, representing a 10.4 percent loss.

Essex County saw a $386,902,000 drop in taxable income (-1.6 percent), and Burlington County lost $315,571,000 (-2.3 percent) according to the study.

Cape May County had the highest percentage growth in taxable income — with new neighbors adding $124,628,000, boosting the existing tax base by 5.4 percent.

Ocean County had the most money moving in, with a $392,190,000 (2.8 percent) boost to the existing tax base. Atlantic County ($125,633,000/+2.1 percent) and Monmouth County ($372,782,000/+1.5 percent) also had money-makers settle in, according to the study.

To read more about the Economic Innovation Group's study, click here.