Wall Street's Great Migration: $2.7 Trillion Flees New York and California

Over 370 investment firms have shifted their headquarters since 2020, taking $2.7 trillion in assets with them. The biggest winners from this migration include Florida, Texas, Tennessee, and North Carolina. Meanwhile, New York and California have each lost around $1 trillion in managed assets due to the exodus. The relocation wave began in earnest when Citadel moved its base to Miami in 2022. Apollo Global Management followed suit, shifting its headquarters to the same city while keeping its flagship office in New York. AllianceBernstein also relocated, choosing Nashville as its new home.

Firms like Fidelity, Vanguard, and Goldman Sachs have since expanded their operations in Texas. The trend reflects a broader shift away from traditional financial centres such as New York and San Francisco. Texas, Florida, and Tennessee now attract businesses with their lack of state income tax, lower property costs, and lighter regulations.

New York and California, by contrast, impose high state income taxes—up to 13.3% in California and 10.9% in New York—alongside stricter business rules. Apollo's recent announcement of a second U.S. headquarters further signals this ongoing movement. Cities like South Florida, Texas, and Nashville remain top choices for new offices. The migration has reshaped the financial landscape, with Texas, Florida, and Tennessee gaining prominence. Companies continue to prioritise cost savings and business-friendly policies over traditional hubs. The shift shows no signs of slowing, as more firms explore relocations to these growing centres.