The best cities for young professionals

How you start your career is an important determinant for future financial success. If you’re able to find a high-paying career early, you can build more savings, get promoted earlier and have more long-term, financial flexibility.

The place you start this high paying career matters. Some cities have affordable housing that allows you to invest in the housing market or lets you rent while you save. Other cities offer a wide range of job opportunities, meaning you’re not stuck at a dead-end job forever.

Below is determined by nine metrics: percent of residents between the ages of 25 and 34, the unemployment rate for young adults, the labor force participation rate for young adults, median rent, entertainment establishment rate, job diversity, median earnings, earning change over time and media housing cost as a percent of media earning.

KEY FINDINGS

OPTIONS EXIST EVERYWHERE – No matter what part of the country you’re in, there should be at least one great city for you. If you like the Northeast, give Jersey City a shot. If you prefer life on the West Coast, moving to Seattle or San Francisco could be a good option. Sioux Falls, South Dakota; Minneapolis; and Omaha, Nebraska score well in the Midwest, while the South has Arlington, Virginia; Atlanta, Georgia; and Nashville, Tennessee all ranking in the top 20.

LOTS OF OVERLAP – Six of last year’s top 10 finished in the top 10 this year. Most impressively, Sioux Falls, South Dakota Seattle, and San Francisco, all kept spots in the top five.

Sioux Falls, SD

• A low unemployment rate of 1.49%
• 90% of young adults between the ages of 25 and 34 are working
• The median full-time worker would need to use 23% of his or her income to afford the median rental

Raleigh, NC

• 8% of young adults between the ages of 25 and 34 are working
• Median full-time worker earns nearly $49,000 per year
• The median full-time worker would need to use 25% of his or her income to afford the median rental

San Francisco, CA

• Young, hip city with the potential of high salaries
• Has the third-highest proportion of young adults
• Fourth highest median earnings for full-time workers
• The fastest growth in earnings for full-time workers
• The median full-time worker would need to use 29% or more of his or her income to afford the median rental

Pittsburgh, PA

• Traditionally undervalued city according to past research
• 21% of residents are between the ages of 25 and 34
• Very affordable
• Median rental cost is only $874 per month
• The median full-time worker would need to use 23% of his or her income to afford the median rental

Seattle, WA

• Most popular landing spots for moving millennials
• Best city for coffee lovers, or tech scene
• 23% of residents are between the ages 25 and 34
• 91% of young adults are working
• High earners but high rents

Austin, TX

• Solid economic base
• Rent is fairly expensive
• The median full-time worker would need to use 30% of his or her income to afford the median rental

Minneapolis, MN

• Has fourth-highest labor force participation rate and the median full-time worker here earns more than in 70% of other cities.
• Unemployment rate for young adults is at 5.7%

Omaha, NE

• Rent is fairly cheap
• The median full-time worker would need to use 23% of his or her income to afford the median rental
• From 2012 to 2016 median earnings for full-time workers increased by 15%

Arlington, VA

• Good if you want to settle down
• Not a party town
• Renting is kind of expensive
• Highest median earnings for full-time workers, a figure that grew 20% from 2012 to 2016.
• Not a lot of variety when it comes to jobs

Anchorage, AK

• The most diverse job market in the country, ranking 28^th in that metric.
• Low unemployment rate for young adults
• High median earnings for full-time workers
• The median full-time worker would need to use 28% of his or her income to afford the median rental

There you have it, young folks! I know it’s a lot of information but hey better to know these kinds of things, especially if you’ve been looking for a change. This can help you narrow down the searches.

BTW here are some tips for retirement

Make tax-friendly investments – When you’re investing for retirement, make sure you contribute as much as you can to your 401(k) or your IRA. This will lower your overall tax burden and increase the amount you can save.

Scout out affordable places to retire – Bureau of Labor Statistics data shows that the average household cuts spending by about 25% in retirement, but by moving somewhere with a low cost of living, you may be able to cut expenses even further. Every dollar you don’t spend in retirement is one you don’t need to save while you’re working.

Talk to an expert – Anytime you are investing or planning for the future it’s a good idea to get the best advice possible. A financial advisor can explain all your retirement options to make sure you are on the path you want. If you don’t know where to find one, check out SmartAsset’s financial advisor matching tool. It will pair you with up to three local financial advisors who fit your specific needs.

As always, thank you for reading. I appreciate you and your time,

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