If you look at the states that are absorbing a disproportionate share of working-age and retirement-age Americans, it does not coincide with where new advisory firms are forming, according to a study by AdvizorPro.
AdvizorPro analyzed population changes between 2020 and 2024 for Americans aged 22 and over, which the researchers said is the core market for financial advice, “from early career accumulation through retirement and legacy planning.” Florida saw the highest growth in population, up 9% from 2020. That was followed by Texas (8.6%), South Carolina (8%), and Arizona (7.4%). North Carolina, Georgia and Tennessee also grew significantly.
At the same time, AdvizorPro looked at the states with the highest numbers of new RIAs formed during the same time period. California, which had just 1.2% population growth, was the single largest source of new RIA headquarters. New York actually experienced a decline in this age group, yet the state ranked near the top in new firm launches. Pennsylvania and Colorado also topped the list of states with the most new RIAs.
“This is not a failure of the market,” writes Hesom Parhizkar, AdvizorPro co-founder and chief product officer. “It is a signal that RIA entrepreneurship follows infrastructure, talent density and existing wealth pools more closely than raw population growth.”
That said, Florida and Texas, both on the list with high growth in that age group, also ranked high in new RIA launches, a sign that there is some alignment between demand for advice and where new firms are cropping up.
States like Georgia, Tennessee, South Carolina and parts of the broader Southwest are ripe for new RIA headquarters, the researcher points out.
AdvizorPro’s analysis only looks at RIA firms by headquarters only, and excludes remote advisors and satellite offices. And while firms can now serve clients nationally from anywhere, their headquarters signal where the founders, senior decision-makers and capital, compliance and operating infrastructure sit.
“From a competitive standpoint, that has long-term implications for talent development and local advisory ecosystems,” Parhizkar writes.
Either way, the mismatch between demand and new RIA headquarters creates an opportunity for new local firms in high-growth states, acquisitive strategies by national RIAs and hybrid models with centralized headquarters.
“The client base is moving faster than the headquarters map,” Parhizkar said. “That gap is where the next generation of RIA growth will come from.”
