Map shows best cities for millennials earning $150,000
A new study has tracked the city locations most likely to appeal to millennials earning above $150,000, and Newsweek mapped the report, by GoBankingRates.
Why It Matters
Since the pandemic, millennials have fled major cities due to high costs of living and the growing popularity of remote work.
While places like New York City and Los Angeles once had their appeal for those in their 20s, many millennials have preferred setting their roots in smaller metropolitan areas.
What To Know
GoBankingRates analyzed several factors to calculate which cities were best for young professionals aged 25 to 44. This included each city’s crime data as well as household median income and livability scores.
The top five cities were: Cambridge, Massachusetts; Jersey City, New Jersey; Santa Clara, California; Hillsboro, Oregon; and Boston, Massachusetts.
An estimated 40 percent of Cambridge’s population is between the ages of 25 and 44, and 29 percent of their households have an income of $150,000 or more. Property crime was also relatively low at 23.9 per 1,000 residents.
Jersey City also scored high on the list due to its similar population proportion of millennials. It also had an 82 livability score and a property crime rate of only 14.4.
In Santa Clara, the third-placed city, 23.8 percent of all households ages 25 to 44 made $150,000 or more. And its violent crime rate was just 2.1 per 1,000 residents.
Some other large cities scored in the top 10 as well though, including Austin, Texas and Seattle, Washington which took eighth and ninth place.
What People Are Saying
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: “There’s nothing too surprising about the cities selected, given their proximity to universities and major metropolitan areas, as well as the growth they’ve experienced since the pandemic. Take Texas, for example—many of the suburbs highlighted are near larger cities, offering easy access without the challenges of dense urban life. These areas have seen significant growth over the past five years as major employers like Toyota, Charles Schwab, BMW, and Tesla have established headquarters there. With deregulation and no state income tax, Texas has become a business hub.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “I don’t think anyone would be surprised to see Cambridge at number one on a list of best cities for young and wealthy Americans. Its reputation as a city that fosters professional advancement through top-tier educational institutions and programs is verified through this ranking. What is surprising is the lack of any cities from Florida in the top 50. During the pandemic, we saw a tremendous surge in the Sunshine State’s population, as residents from more pandemic restricted states flocked to cities like Miami and Tampa. In the years since, the state has increased dramatically in the cost of living, though, and it’s very clear that for many young, high-income professionals, it’s not the desirable location it once was.”
HR consultant Bryan Driscoll told Newsweek: “The cities listed reflect a clear prioritization of economic convenience and livability for the wealthy, young elite over the broader needs of a city’s population. It’s not surprising that cities like Austin, Seattle, and Cambridge are on the list. They’ve long been a place for affluent demographics. But what’s glaringly absent is a discussion of how this influx of wealth impacts the working class in these areas.”
What Happens Next
While these cities may prove promising for millennials, Thompson said rapid growth can bring along its own challenges.
“Infrastructure hasn’t always kept pace with the influx of new residents, leading to congestion and strain on resources. What makes a city attractive- economic opportunity and affordability-can also create downsides, such as increased traffic and a decline in quality of life.”