Key Details:
- MoneyGeek’s latest report reveals the top U.S. cities where young adults are thriving financially, with Salt Lake City leading the way in affordability and low debt.
- While the West and South are seeing growth, the Northeast faces a population decline as high costs push young adults to relocate.
- Eight of the ten cities with the highest cost-adjusted incomes for young adults are in the South or West, with Bellevue, Washington, topping the list at $102,255 annually.
A new MoneyGeek report speaks to young adults with its list of top U.S. cities for Gen Z.
This is the generation that ranks housing affordability as its number one voting priority. And with the election just days away, it seems timely to point out the cities where Gen Zers are thriving financially. Because that could make a difference in how they vote this year.
To identify the cities where Gen Z adults are living the good life, MoneyGeek analyzed data for 138 U.S. metros with populations of 100,000 or more, rating them on key factors including:
- Income
- Homeownership rates
- Young adult population
- Student loan burdens
- Access to entertainment, dining, etc.
Read on for the top cities and other highlights from the report.
Top U.S. Cities Where Young Adults Are Financially Thriving
Here are the 25 Cities where Gen Z adults are financially thriving:
- Salt Lake City, UT
- Abilene, TX
- Des Moines, IA
- Boise, ID
- Las Cruces, NM
- Amarillo, TX
- Baton Rouge, LA
- Lincoln, NE
- Murfreesboro, TN
- Springfield, MO
- Round Rock, TX
- Oklahoma City, OK
- Fargo, ND
- Waco, TX
- Corpus Christi, TX
- Chandler, AZ
- Omaha, NE
- Madison, WI
- Brownsville, TX
- Durham, NC
- Tulsa, OK
- Wichita, KS
- Minneapolis, MN
- Lubbock, TX
- Kansas City, KS
Salt Lake City takes the number one spot, reporting a 41% increase in its young adult population from 2012 to 2022 and the lowest federal student loan debt per borrower at $11,062.
Boise, ID, and Las Cruces, NM, have the lowest cost of living for young homeowners, with Las Cruces seeing a 44% increase in its young adult population—the highest of all the cities on the list.
Des Moines, IA, ranks at number three with just 32% of young adults paying more than 30% of their income on rent.
Best Large Cities for Young Adults
Ranking at 27th place overall out of the 138 metros in MoneyGeek’s study, Phoenix ranked highest among the 10 largest cities. The cost-of-living-adjusted median income here is $53,484, and the average student loan debt burden sits at $12,567 per borrower, earning Phoenix 10th place in the ranking for affordability.
Four Texas cities—Austin, Dallas, San Antonio and Houston—-also scored well, with an average student loan debt of $12,933 per borrower, keeping the debt burden (comparatively) low.
10 largest cities ranked best for Gen Z adults
- Phoenix, Arizona
- Austin, Texas
- Dallas, Texas
- San Antonio, Texas
- Houston, Texas
- Philadelphia, Pennsylvania
- Chicago, Illinois
- San Diego, California
- Los Angeles, California
- New York, New York
Regional Trends in Young Adult Population
In the Northeast, the young adult population went down nearly 10% from 2012 to 2022, with New York City and Philadelphia each losing 15%.
The main reason for that decline may be the high cost of living in the Northeast. Even with a median household income of $41,515 for young adults 25 and younger, that figure drops to $36,377 when adjusted for the cost of living—the lowest income among all regions.
It doesn’t help, either, that the Northeast has a 9% unemployment rate for young adults.
Meanwhile, the South and West saw 3% to 4% growth in their young adult population, indicating a shift towards these regions.
In the South, the median household income for young adults, adjusted for living costs, is $40,462. In the West, it’s $43,219.
Median household incomes, adjusted for living costs, in the South ($40,462) and the West ($43,219) are the two of the highest in the U.S. Bellevue, Washington leads Gen Z-friendly Western metros with a cost-adjusted income of $102,255.
The South, for its part, has a lower young adult unemployment rate at 8%, compared to 9% in the Northeast and West.
10-year change (2012-2022) in young adult populations by region:
- Northeast: -9.6%
- Midwest: -1.1%
- South: +3.4%
- West: +4.4%
Read the full report for more information, including methodology.
