Jensen Huang at the Taipei Dome in Taipei, Taiwan.
Gene Wang/Getty Images
Nvidia's Jensen Huang has zoomed up Bloomberg's rich list to rank 13th with a $107 billion fortune.
Only Michael Dell, Mukesh Ambani, and Warren Buffett stand between the CEO and a spot in the top 10.
Nvidia's AI-fueled stock gains have boosted Huang's wealth about eightfold in less than 18 months.
Jensen Huang has added about $93 billion to his net worth in under 18 months, leaving him just three spots away from breaking into the ranks of the world's 10 wealthiest people.
The Nvidia cofounder and CEO's 3.5% stake in his company was worth less than $14 billion at the start of last year. With a fortune of that size now he'd barely crack the top 150 on the Bloomberg Billionaires Index.
Since then, Nvidia stock has skyrocketed from below $150 to north of $1,200 — an increase of more than 700%. The chipmaker's market capitalization just passed $3 trillion for the first time, leapfrogging Apple to become the world's second-largest public company after Microsoft ($3.15 trillion).
Huang now ranks 13th on Bloomberg's rich list with a $107 billion fortune. Only Michael Dell ($109 billion), Mukesh Ambani ($109 billion), and Warren Buffett ($135 billion) stand between him and a top 10 spot.
Bernard Arnault, the CEO of LVMH, remains top of the list with a $212 billion fortune — $8 billion more than Jeff Bezos.
Nvidia and Huang have seen such sensational gains because of the artificial intelligence craze. Companies like Microsoft, Tesla, and Meta are buying Nvidia's graphics processors by the truckload as they rush to build everything from AI-powered chatbots and recommendation systems to self-driving cars and humanoid robots.
The demand boom fueled a huge rise in Nvidia's revenue to $26 billion, and pushed net income to $14.9 billion in the three months to April 28.
By comparison, Meta's revenue was $36.5 billion and net income $12.4 billion in the first quarter of this year.
Investors have piled into Nvidia stock because they're convinced AI is transforming the world, and the chipmaker will play a critical role in powering the revolution.
As a byproduct of that belief, Huang's wealth has grown by roughly eightfold in under 18 months.
This isn't the first time Virgin Media has sued an Irish-registered fishing vessel.
LisaValder/Getty Images
Virgin Media is suing an Irish fishing trawler for $870,000 over damage to an undersea cable.
The telecoms giant claims that the trawler damaged a fiber optic cable while fishing for scallops.
The trawler's owners say there's no proof they did anything wrong.
UK telecoms giant Virgin Media is suing a fishing trawler for more than $870,000, according to Irish media, accusing those on board of damaging one of its undersea fiber optic cables.
Scallop fishing involves towing dredges along a seabed to catch scallops, which can inadvertently damage underwater cables, which are often thousands of miles long and usually laid on the ocean floor.
According to WIRED, breaks in undersea cables are nearly always caused by fishing trawlers or dragging anchors.
The 2015 incident required Virgin Media to charter a repair ship and deploy a remotely operated vehicle to fix the break, WIRED reported at the time. This caused days of repair work and slowed internet service, it said.
At a hearing on Tuesday, according to the Irish Times, Virgin Media's lawyers argued that the defendants should have been aware of the cable's location, as it was marked on industry-recognized charts and Ireland's Marine Atlas.
But the defendants argue that there is no proof that The Lida Suzanna was to blame, according to the Irish Independent.
They also argued that Virgin Media would have been responsible for the damage even if the vessel had physically caused it, because it failed to take measures to bury or protect the cable, the newspaper said.
Legal representatives for Virgin Media and the trawler's owners did not respond to Business Insider's requests for comment.
This lawsuit follows a similar case in which Virgin Media went after another Irish fishing vessel. High Court documents show that it sued The M V Willie Joe in 2018, settling the case in 2022.
An offshore gas platform burns methane, a potent greenhouse gas that is causing the climate crisis.
Getty Images
UAE's state-owned oil company brokered deals to boost fossil fuels at home and overseas in 2023.
The deals included supplying gas to China and expanding into Egypt and Azerbaijan.
UAE led the 2023 global climate summit that called for a transition away from fossil fuels.
Last year, while the United Arab Emirates oversaw a historic agreement to fight the climate crisis, it was brokering deals for oil and gas that could bring the country tens of billions of dollars and boost fossil-fuel production globally.
An analysis by the climate watchdog Global Witness found that the UAE's state-owned oil company, known as ADNOC, closed more than a dozen deals to expand its oil and gas footprint at home and overseas.
Among the transactions were ADNOC's first contract to supply gas to China; a joint venture with the oil giant BP in Egypt; and a stake in Azerbaijan's gas field in the Caspian Sea. ADNOC also bought a Dutch fertilizer company and acquired a stake in an Austrian plastics maker, both of which rely on fossil fuels for their products.
In November, during the UN climate summit in Dubai, the BBC and the Center for Climate Reporting reported that UAE planning documents showed that oil, gas, petrochemical, and renewable-energy projects were among the talking points for meetings with countries in the lead-up to the climate summit, COP28. The summit was led by ADNOC's chief executive, Sultan Al Jaber.
Global Witness found that ADNOC either pursued or closed fossil-fuel deals with firms in 11 of the 16 countries targeted in the UAE planning documents. These included deals to sell liquefied natural gas to Chinese-owned firms and to expand oil and gas businesses in Egypt and Azerbaijan — two countries that open up the UAE's access to Europe as it seeks non-Russian gas. Global Witness estimated that the overall value of the deals it analyzed was nearly $100 billion, though some haven't been finalized.
"Make no mistake, COP28 was hijacked by the interests of the fossil fuel industry, who weren't content simply to block or stall genuine climate policy but used the opportunity to pursue more climate-wrecking oil and gas deals," Patrick Galey, a senior investigator at Global Witness, said in a statement.
ADNOC did not return a request for comment from Business Insider, but Global Witness presented its findings to the oil giant. A spokesperson told Global Witness that the allegation that ADNOC used COP28 to pursue business deals was "completely baseless and false."
The spokesperson argued that COP28 "delivered the biggest climate breakthroughs" since the Paris Agreement in 2015, when world leaders agreed to try to limit global warming to 1.5 degrees Celsius above preindustrial levels.
A historic deal in Dubai
A panel of hundreds of climate scientists convened by the UN has said that temperature threshold is likely to be crossed within the next decade, pushing the planet toward a catastrophe, unless countries rapidly stop burning fossil fuels. They've said emissions from existing oil, gas, and coal infrastructure are on track to exceed the Paris Agreement goal.
At COP28 in Dubai, countries for the first time called for a transition away from fossil fuels this decade and for the tripling of renewable energy by 2030. In a side agreement brokered by the UAE, oil and gas companies accounting for 40% of global production promised to nearly eliminate their methane emissions by 2030.
But the Dubai deal left the door open to more fossil-fuel production by promoting technology such as carbon capture, which is still in the early stages of development. The deal also said "transitional fuels" could play a role in reducing emissions — a nod to gas, which is less polluting than coal but a major emitter of methane.
Climate scientists have found that while the UAE is investing in renewable energy, carbon capture, and other low-carbon technologies, that activity is dwarfed by the country's fossil-fuel expansion. The UAE, the seventh-largest oil producer, is investing $150 billion to boost its own oil and gas production through 2027. Global Witness' investigation also sheds light on how the country is securing new markets overseas.
Galey said he was concerned that another petrostate, Azerbaijan, which is hosting this year's UN climate summit, could follow the UAE's lead. COP29 is set to be led by Azerbaijan's ecology minister, Mukhtar Babayev, who spent nearly two decades in senior positions at the country's state-owned energy company until leaving in 2018.
Azerbaijan is an emerging economy that relies on oil and gas for nearly half of its GDP and more than 92% of its export revenue.
COP29 organizers didn't return a request for comment from BI. They told Global Witness that they "reject in the strongest terms the suggestion that Azerbaijan has a hidden agenda" in hosting the climate summit.
China's President Xi Jinping and India's Prime Minister Narendra Modi attend a session meeting during the 10th BRICS summit on July 27, 2018 in Johannesburg, South Africa.
MIKE HUTCHINGS via Getty Images
India's Prime Minster annoyed China after his reelection.
He accepted a congratulatory message from Taiwan's leader.
Tensions between India and China, Asia's two major powers, are increasing.
India's Prime Minister Narendra Modi riled China in one of his first acts after being reelected for a historic third term.
Modi, who was reelected in a much narrower-than-expected victory on Tuesday, accepted the congratulations of Taiwan's President Lai Ching-te.
"I look forward to closer ties as we work towards mutually beneficial economic and technological partnership," Modi wrote in a post on X.
China is often furious when countries publicly acknowledge Taiwan's independent status.
At a press briefing Wednesday, China's foreign ministry criticized Modi's message.
"India has made serious political commitments and is supposed to recognize, be alarmed about, and resist the Taiwan authorities' political calculations," said foreign ministry spokeswoman Mao Ning at a press briefing in Beijing on Thursday, reported Bloomberg.
Tensions between China and India, Asia's biggest powers, are increasing as New Delhi seeks to counter what it sees as intensifying Chinese aggression in the region. A clash on the countries' Himalayan border in 2020 resulted in the deaths of 20 Indian soldiers and four Chinese.
While India and Taiwan do not have formal diplomatic relations, Modi has sought to strengthen economic ties with Taiwan in his 10 years in office.
An employment pact between the two countries could allow Indians to work in Taiwan. Meanwhile, Taiwan is seeking to increase its investment in India.
"There's a foundation for India and Taiwan to move forward [with a trade deal]," John Deng, Taiwan's longest-serving cabinet member, told the Financial Times in April.
"Taiwanese investments will help India develop its manufacturing infrastructure. India is competing with China as a global manufacturing hub, and this represents an opportunity for Taiwan to step up its business ties."
Costco plans to stop selling books on a regular basis, publishing execs told The New York Times.
Costco will only sell books for the holidays, as well as on some occasions throughout the year, the execs said.
The executives told The Times that the decision was mainly down to the labor required to stock books.
Costco plans to stop selling books on a regular basis, largely because of how much labor it requires, four unidentified publishing executives told The New York Times.
The warehouse giant will stop stocking books regularly from January, they said. Instead, Costco will sell books between September and December for the holidays, as well as potentially selling some books sporadically at other times of the year, the executives said.
Costco did not immediately respond to a request for comment from Business Insider, made outside regular US working hours.
The executives told The Times that the decision was mainly down to staffing demands. Stocking books requires large amounts of labor as they have to be laid out manually by workers rather than rolled out on a pallet and replaced frequently, they said.
The Times reported that Costco had already stopped sales of books in some areas including Alaska and Hawaii.
Reddit users have lamented the decision, with many arguing that Costco should at least continue selling children's books.
"Stopping selling kids' books would be like canceling the hot dog in the food court," one Reddit user commented.
Sales of books at non-bookstores like Costco are largely impulse purchases, with shoppers going to their local warehouse to stock up on groceries and perhaps slipping a book that caught their eye into their account. As The Times pointed out, not all of these sales will be transferred over to other retailers.
US sales of print books dropped 3% in 2023 compared to the prior year, with the biggest decline in children's books, according to market research company Circana. This included fewer sales of children's fantasy, magic, and humor books, as well as non-fiction. But adult fiction sales grew, led by fantasy, romance, coming-of-age, and historical fiction books, Circana said.
BookTok has been credited with boosting print book sales in an age of Kindles and other e-readers. Publisher Bloomsbury reported record sales in the year to February 29, which it credited largely to fantasy author Sarah J. Maas, whose series "A Court of Thorns and Roses" has become a BookTok darling.
Archer's Midnight eVTOL and Nikhil Goel, the chief commercial officer, at the 2023 Dubai Air Show.
Pete Syme/Business Insider
Archer Aviation announced it has received a certificate for commercial operations from the FAA.
However, it still needs certification for its Midnight eVTOL — on track to launch next year.
Rival eVTOL firm Volocopter plans the first commercial air taxi flights during the Paris Olympics.
Archer Aviation has received the green light for commercial operations.
The California-based company, which has a market capitalization of $1 billion, announced Wednesday that the Federal Aviation Administration has granted it a Part 135 air carrier and operator certificate.
It marks a major step forward for the firm, which is helping pave the way for electric-vertical-take-off-and-landing aircraft or eVTOLs — often referred to as air taxis.
Archer hopes to transform urban travel, replacing an hourlong commute with a 10-minute flight on its quiet, sustainable aircraft.
CEO Adam Goldstein previously told Business Insider that a seat should cost about $100. The aim is to replace ride-share services between city centers and airports.
Archer said the FAA certificate allows it to refine its systems before it launches services for customers like United Airlines.
However, its flagship aircraft, Midnight, still needs certification.
In Wednesday's press release, United's chief financial officer, Mike Leskinen, said: "The pace of progress and innovation that Archer has achieved over the last few years is nothing short of impressive and today marks another key milestone in their journey to bring safe, sustainable, and low-noise air taxi services to market."
"Together, we look forward to shaping the future of air transportation and delivering unparalleled flying experiences to United passengers," he added.
Archer is the second eVTOL company after Joby Aviation to announce receipt of a Part 135 certificate from the FAA.
The first commercial air taxi flights are planned for the Paris Olympics, courtesy of the German startup Volocopter. Archer is aiming to debut commercial flights next year.
Nolan Church is the cofounder and CEO of FairComp and Continuum.
Courtesy of Nolan Church
Nolan Church was the former head of talent at DoorDash and ex-chief people officer at Carta.
He said companies use PIPs to protect themselves and avoid blindsiding employees with firings.
Church said if you're put on a PIP you've been "scarlet-lettered" and should move jobs immediately.
This as-told-to essay is based on a transcribed conversation with Nolan Church, a former recruiter at Google and DoorDash and ex-chief people officer at Carta, about his experience of putting people on PIPs. The following has been edited for length and clarity.
I've spent my career in recruitment. From May 2012 to early 2015, I worked as a recruiter for Google Access. Then, I became the head of recruiting at DoorDash and later the chief people officer at Carta, a pre-IPO equity management company for startups.
My first experience with PIPs was at DoorDash
DoorDash was the first place I encountered performance improvement plans or PIPs. They're a way of giving a low performer a chance to correct a performance problem before termination.
When I joined as the head of talent in March 2015, I was the company's 50th employee. This was a key leadership role for HR and recruiting. We were setting a company precedent for how we wanted to manage our employees.
As we started encountering low performers, we needed to figure out how to manage them. So we talked to former or current heads of HR at other companies to understand how they thought about performance management.
They said there were two ways that companies thought about PIPs — do them or don't. The HR leaders said we could either make it so everyone went on a PIP before being terminated or put no one on a PIP and give increasing feedback to lower performers.
We went the PIP route at DoorDash. In the early days, we decided that the sales team would be the only team with a formal PIP process because they were the department with the clearest metrics. It's You're either hitting your quota or you're not. Sales metrics are very black and white.
We could be very clear with somebody and say, "If you don't hit quota, this is going to be your last month of employment."
During my tenure, everybody I saw being put on a PIP got terminated either during the PIP or shortly after. My personal take is that once you get to the point of putting somebody on a PIP, the decision to terminate has already been made.
I've never seen someone survive a PIP
When I moved to Carta in 2018 as the chief people officer, we had a lot of discussions there about whether we wanted to put people on PIPs. Early on, I instituted a policy that required managers to put employees on a PIP before terminating. We did this to ensure managers delivered feedback and employees weren't surprised they were being let go.
However, as we put people on PIPs, we found them to be disingenuous and ultimately eliminated them. Instead, we terminated employees with a generous severance package. To be candid, I've never seen somebody survive a PIP.
As a company, you want to consider why you're putting someone on a PIP. Are you doing it to make the employee successful? Or to cover your ass?
PIPs are used by companies to cover their ass almost every single time because a team doesn't have enough data about performance, and managers don't do a great job of providing feedback.
Usually, companies put someone on a PIP because they're worried that the employee will be surprised by their termination without one and could take legal action. The PIP provides legal cover.
If you get put on a PIP, make the acronym stand for Paid Interview Period
If you're an employee on a PIP, you need to view it not as a "Performance Improvement Plan" but as a "Paid Interview Period" because your employment is coming to an end at that company, either very shortly at the end of the PIP or usually soon thereafter.
You should assume it's not worked out at that company and put the majority of your efforts into trying to find a new job as fast as possible. Even if you survive the PIP, you have to think about "what happens to me now?"
I have a very large community of HR leaders in my circle. I've never heard of somebody who went on a PIP and became a top performer at that company.
So even if you survive, you've been scarlet-lettered at that company. The likelihood of you getting a raise or promotion after a PIP is insanely low.
The best option for you is to find a different company where you can be successful and start with a clean slate.
This cohort typically earns six-figure paychecks and is more likely to be millennials or Gen Zers, per Sherwood News. They spend money on luxury fashion, travel, and restaurants — either taking inspiration from their favorite celebrities or responding to socialtrends.
HIFIs often live "out of step" with their means, spending more than they earn instead of directing funds toward long-term wealth-building strategies, said Natasha Knox, founder of financial planning and wealth management firm Alaphia Financial Wellness.
"They're spending every cent they make, and not setting aside a dime," she said, adding that many HIFIs seek out her services. "They're not feeling secure because, on some level, they know that something's wrong."
Inflation and the rising cost of living in the US are partially to blame for HIFIs precarious financial situation. Inflation rates are double what they were 10 years ago, according to the Bureau of Labor Statistics. The consumer price index for US cities, which assesses the cost of living, also rose by about 8% in the last 10 years.
HIFIs' spending psychology comes from wanting to belong
Knox said that there's often a disconnect between how much money HIFIs make and how much they can afford to spend.
For example, Knox said many people base their spending on their gross income but don't take into account how much of their paycheck goes to taxes, a 401(k), or major bills like rent and groceries.
HIFIs also tend to overspend when they receive a bonus at work or other financial windfalls. She said she has seen clients allocate their bonus to multiple major purchases — sometimes spending the money "three times over," she said.
"We all have ways that we give ourselves permission to adapt our lifestyle, the things we say to ourselves," Knox said.
Much of HIFIs' spending psychology comes from wanting to belong, Knox said. People want to be able to afford the same clothes or concert tickets as their friends and family, so they keep spending money.
Knox added that people's desire to fit in with particular groups, and to feel wealthy, can lead to long-term lifestyle creep.
Small spending changes can boost future wealth
Many people underestimate how much small spending changes can impact their overall wealth, Knox said. Many HIFIs she works with aren't in debt, but they also don't put enough of their earnings into their savings account.
HIFIs should consider how much they need to reach their retirement goals and pay for major purchases, along with saving money for emergencies or unexpected expenses.
"It's not that they need to have more income, it's that they need to calibrate their spending to be within their income in order to save," Knox said.
Although saving money can seem daunting, Knox said that small, everyday spending decisions can make a significant difference for HIFIs' wealth over time. For example, people can still spend money on clothing, travel, and social activities — but they should set budgets and closely track their spending. She said she works with clients on ways they can make decisions that aren't financially detrimental but still allow them to enjoy their lifestyle.
"I think most people really underestimate how wealth can or how assets can accumulate bit by bit," Knox said. "And, on the flip side, small reductions in overspending can make a meaningful difference."
Are you a HIFI? Do you struggle to afford your lifestyle, even with a high income? Are you open to sharing your story? If so, reach out to this reporter at allisonkelly@businessinsider.com.
Cheryl Sands (left) and Janet Sussman (right) both moved to Central America.
Cheryl Sands/Janet Sussman
5 Americans told BI they moved to Latin America for a more peaceful — and cheaper — retirement.
Some said they were scared they wouldn't have enough for a comfortable retirement in the US.
Others said Latin America presented them with new employment and business opportunities.
Janet Sussman was struggling to see how she could remain in the US.
Sussman, who started a catering nonprofit in Florida, and her husband saved enough to build their dream home in the woods of upstate New York with their son. However, by the mid-2000s, her life was turned upside down.
In 2006, her son died in a construction accident. Her husband, who had a major stroke that same year, died in 2010. Her other two children married and moved away, and she was lost on what to do.
"I didn't know who I was in this new role," Sussman said. "I didn't know where to go from there."
Ultimately, she moved to Panama in 2012 to restart her life. She and a friend started a shuttle service to make money while she studied for her bachelor's degree. She then worked as a teacher at an international school for over four years before opening a language school, which she sold shortly after.
Now, Sussman travels full-time throughout Panama as a housesitter between stays at Airbnbs. She still returns to the US to see family, though most of her time is spent exploring and enjoying Panama's peace and relatively inexpensive prices.
"We all have tragedies in our lives, and we need those," Sussman said. "If not, you don't appreciate the good things, and that's why I think I have such a child-like awe of my travels."
Business Insider spoke to five Americans who moved to Latin America, many for their retirements. Some said they couldn't afford to retire in the US but could live much more comfortably south of the border, though not everything is cheaper. Others said Latin America offered more business and employment opportunities and a friendlier culture. All agreed that life is in many ways better in Latin America than in the US.
Moving for retirement
Cheryl Sands, 69, didn't think she'd ever comfortably retire in the US. She taught chemistry for over two decades in Illinois, then quit in 2007. She moved to a less expensive town by the Illinois-Kentucky border, where she bought a house in the woods on 10 acres.
Between her pension and Social Security, she brought in $30,000 a year, which wasn't enough to keep up with rising property taxes and daily expenses. She substitute-taught and took on a side gig installing fencing to supplement her pension.
Her two siblings, 78 and 82, still work to pay their bills, so she started looking for unconventional ways to avoid their situations. After visiting Costa Rica a few times, she packed her bags, sold most of her belongings, and moved with her dogs to experience "pura vida."
Despite some logistical challenges, she moved into her first condo and got a more spacious one a month later. She lives in a beach town called Junquillal in Guanacaste, which has some small stores and is about a 40-minute drive from the nearest major city. She said she feels more welcome in Costa Rica than in Illinois, even with a language barrier.
"What I love about Costa Rica is the freedom, work ethic, value of learning and education, taking responsibility for their and their children's actions and accepting the consequences of their actions, pride in what they have, even if it's not much, respect for others, positive attitudes, and valuing children and the elderly," Sands said.
Her home payment, with a large yard, lawn maintenance, and electricity, is about $1,100 monthly. While packaging for food is smaller than in the US, she said food is cheaper than in the US. She said prices are steadily rising, though she's not too worried.
Gary Keenan, 71, disagrees that Costa Rica is cheaper than the US, though he's fine paying the upcharge. He moved to Costa Rica from New Mexico nine years ago after working for 25 years running a claims business. He moved after retiring and finalizing his divorce, settling in a less touristy area and learning Spanish.
In his area of the Central Valley near San Jose, food is often double the cost of what he paid when he last visited the US, particularly for meats. With a worsening exchange rate, he said the cost of daily supplies and furniture is higher than in the US. He bought his car in early 2023 for $34,000, but he said comparable prices in the US were between $16,000 and $18,000.
Still, he said rent and home prices tend to be less than in many parts of the US. His three-bedroom apartment costs about $1,500 a month, though he said it would be pricier if he didn't know his landlord.
"Bottom line is any US resident coming here to retire should expect to pay a bit more for daily expenses," Keenan said.
Living and working in nature
Moving to Latin America has allowed some Americans to advance their careers and retirement goals while living a more serene life.
Jose Rodriguez, 65, who recently moved from Chicago to the outskirts of São Paulo, Brazil, said it's giving him more opportunities to open oncology centers and promote business partnerships.
He estimated his living costs are at least 30% cheaper than in the US, and he rents a large property for about $500 a month. He estimated that a modern home could cost below $200,000, compared to about $650,000 in the US. His utilities and internet are well under $100 each month.
He's also been impressed by the calmer, more consistent weather, as well as better and cheaper produce. He also lives in a more rural area with plenty of nature.
For Andy Wiesmann, 62, moving to Medellín, Colombia, was a lifesaving decision. He developed a rare autoimmune disorder that ate up most of his savings, and he could no longer afford an apartment in California's Inland Empire, where he spent most of his life. To protect his health while living more comfortably on his limited income, he turned to Mexico and then Colombia.
He bought a 900-square-foot, three-bedroom, two-bathroom apartment in Medellín for $90,000, equipped with a balcony overlooking the mountains and a pool. All expenses, such as medical bills and food costs, total about $1,500 to $1,800 a month, he said, much less than what we would have paid in California for similar purchases.
The "city dropped into a jungle" feeling of Medellín allowed him to stay fit with his disability, and he's enjoyed how the temperature usually stays in the 70s and low 80s.
"I have not felt at all like I'm outside of the United States," Wiesmann said. "The malls are first-rate, the restaurants are first-rate usually, the tap water is drinkable, the internet is fast and reliable, and the energy is fast and cheap. Sometimes I have to stop and say, 'Oh my god,' I'm in South America."
Children on swings at the playground at Union Square Park in Manhattan.
Jeff Greenberg/Getty Images
Families with kids under six are leaving New York City at twice the rate of others.
High childcare and housing costs drive families out, with daycare costing $2,000 to $4,000 monthly.
Lower-income and Black and Hispanic households have been disproportionately affected.
The concrete jungle is an increasingly unfriendly playground for young kids and their parents.
Families with kids under six years old are more than twice as likely to leave New York City than families without young kids, according to a new report from the Fiscal Policy Institute, a left-leaning think tank. The exodus of these households from the city and the state — which has spiked since the pandemic — is likely in large part due to soaring housing and childcare costs.
Families with kids six or older move out of the city at the same rates as childless families, suggesting that the costs "uniquely associated with young children — childcare and the need for more space" are pushing families out of the city, FPI reported.
Those who are leaving New York City are more than twice as likely to say they're looking for more affordable housing than they were before the pandemic, the report found. The city is facing one of the most severe housing affordability crises in the country, with median rents at $3,700, median home prices hitting $785,000, and housing inventory at a more than 50-year low. Millennials are increasingly fleeing to the peripheral suburbs far outside the city, where housing tends to be cheaper.
The typical New York City family spends more than a quarter of their income on childcare, which is triple what the US government considers affordable, Business Insider reported last year. Families need to make north of $300,000 a year to afford just one child in daycare in the city, The New York Times reported.
Daycare and preschool programs in the city generally cost between $2,000 and $4,000 per month per child. And the typical family spends about $21,000 per year for childcare for a baby under 18 months old, the city comptroller reported in 2019.
To make matters worse, many parents of young kids were thrown into a panic several months ago when New York City Mayor Eric Adams announced he would cut $567 million from public preschool programs for three-year-olds. Adams reversed his decision this spring amid an outcry from local political leaders and parents.
The affordability crisis is hitting lower-income households and people of color much harder. People who are leaving New York are disproportionately Black and Hispanic. Black New Yorkers are 45% more likely to leave the state and Hispanic New Yorkers are 34% more likely to leave than the rest of the population, FPI found.
The out-migration of Black families from New York City is part of a broader trend, dubbed a "New Great Migration," of Black families leaving expensive northern cities for the suburbs and for the South, where the cost of living is lower. New York City has lost about 9% of its Black residents over the past 20 years and more than 19% of its Black children and teens from 2010 to 2020.
Unsurprisingly, wealthier households are far less impacted by these cost of living issues. Between 2020 and 2022, 17,500 millionaires moved into New York City, while 2,400 left, FPI reported last year. The Institute has found that New Yorkers who make $800,000 or more per year are 25% as likely to leave the city as those who make less.
Have you left New York City or State because of rising childcare and housing costs? Reach out to this reporter at erelman@businessinsider.com to share your story.