While some millennials are struggling to find jobs, others are quickly being snatched by employers. With certain parts of the country having thriving job markets for younger workers, their housing sectors are also booming. Millennials – those born between the early 1980s to the mid-1990s – are finding that moving to areas with job growth combined with less-expensive housing is the key to building wealth in their adult years.
An analysis by Realty Trac based on data from the U.S. Census Bureau between 2007 and 2013 revealed many millennials are choosing where to live based on the state of the job market. Millennials who chasing jobs are leading to greater demand in areas with low unemployment. However, some of their priorities are also causing them to live in higher-priced housing markets, according to Realty Trac.
Here are five of the best cities for millennials looking for job opportunities:
To get the most out of their money, millennials are considering moving to cities that not only present them with better job opportunities, but also offer affordable housing. Many millennials are saddled with debt from student loansand may be better off living in places with lower rental rates. Nashville is considered one of the top places to move to for millennials, accounting for 29 percent of the Nashville-Davidson-Murfreesboro-Franklin, Tennessee, area, according to Realty Trac. The Nashville area has the lowest median home price out of the top 10 list for where millennials are moving with $160,000 in April compared to the No. 1 area where Washington D.C. is located with a median home price of $505,000. Once they move to Nashville, millennials can enjoy the nightlife of the city’s East Nashville, and the downtown “Gulch” areas that are also close to work. These locations offer great opportunities for social events and soaking in the night’s entertainment.
With many major employers in the financial services and retail industries calling the area home, the Twin Cities are quickly becoming a top destination for younger workers. Minneapolis had one of biggest growth rates for entry-level jobs, with 31 percent compared to the previous year. This is just 1 percent behind the overall top location for recent college grads – Phoenix with 32 percent year-over-year growth, according to the infographic by H&R Block. Like the case with Nashville, Minneapolis also has plenty of restaurants and entertainment for millennials wanting to checkout the city’s nightlife.
As Houston features a thriving energy industry, millennials looking to break ground in the oil and gas sector will find plenty of jobs in the area. The H&R Block infographic noted the highest paying industry was oil and gas extraction with the average starting salary being $86,600 – almost $30,000 more than the next biggest sector. According to Texas Monthly, Houston is an attractive location for younger workers because it has a diverse population and a healthy economy. More millennials are moving to Houston as evidenced by the city having the youngest median age in Texas at just 32.
With more millennials heading to these top job-creating cities, investors in Minneapolis investment properties or Houston investment properties should consider buying up properties to supply housing for younger workers.
Since millennials are going where jobs are, Washington, D.C. has become a great city to hire younger workers even with surging housing and rental market prices. With rising employment from the federal government, nonprofits and other city employers, millennials often flock to D.C. to work for their dream companies.
“Naturally, millennials are attracted to markets with good job prospects and low unemployment but that tend to have high rental rates and high home price appreciation, while boomers are moving to lower populated areas which have slower home price appreciation,” said Daren Blomquist, vice president of RealtyTrac.
With the tech boom in the heart of San Francisco and Silicon Valley, many college graduates majoring in software engineering and computer science are moving to this metro area. The world’s largest tech firms call San Francisco and nearby cities home. An infographic by H&R Block found there was a 27 percent increase in entry level jobs in San Francisco. Nationwide, industries with occupations in computer software saw a 37 percent rise in growth.