Once the degree is earned and the career path is set, millennials tend to focus on where they’ll choose to settle next. Sure, for a few years there may be that transitional period when you’re figuring out what you want to do. You may end up moving around as a result, but sooner or later you’ll want to buy. Not rent. The question that arises is, where?
Deciding where to live on a long-term basis isn’t something every millennial considers early on in her career, but it’s worth taking a look at. The fact is that many millennials are still living at home because they can’t afford to live in the area where they grew up in or where they work. At this point, it can be tempting to simply look at where rent and mortgage payments are the most affordable and move there.
Before you do that, let’s take a look at a number of factors that should be considered before packing those bags.
Affordability
Of course you’ll want to take a look at affordability in the areas you’re interested in moving to. In a study based on information from Zillow, the six most affordable cities to live in the U.S. are:
- St. Louis, MO
- Birmingham, AL
- Kansas City, MO
- Richmond, VA
- Detroit, MI
- Indianapolis, MN
In these cities, those who made about $50,000 annually could easily afford the cost of living. Have a realistic idea of what you’ll be making and use that as a basis for what you could reasonably afford when considering rent/mortgage, utilities, groceries, transportation. Also, it’s always a good idea to have extra money to put away for emergencies or savings.
Job Market
That being said, if the area is affordable to live in, but doesn’t have much of a job market, there’s no point in moving out that way to begin with. Next you’ll want to find where the best places for millennials to work are. Who is hiring and where are they located?
In 2014, the best job markets for millennials in the U.S. were in:
- Nashville, TN
- Minneapolis, MN
- Houston, TX
- Washington, D.C.
- San Francisco, CA
Your results will vary depending on what specific job market you are looking at, but take the time to ensure you’ll be able to find a job in the affordable city of your choice. No matter how low the rent is, if you don’t have a job, you won’t be able to pay it anyway.
Entertainment
With those two major factors out of the way, millennials should also think about what kinds of fun will be near them. There’s more to life than just working. You’ll want to go out, have a social life, and find hobbies that interest you in your spare time.
Top cities for millennials based on this criteria include:
- New York, NY
- Arlington, TX
- San Francisco, CA
- Denver, CO
- Austin, TX
- Minneapolis, MN
If having a night life and something to do on the weekends is important to you, don’t rush past this component.
Transportation
How you get to and from work should also be taken into account. If you can rely on public transportation, you don’t need a car. That’s a big expense gone right there. If you do plan on driving, what’s the traffic like? Will you be in gridlock going to work every day? What are gas prices even like?
Some of the U.S. cities that have the best transportation systems are:
- New York, NY
- Newark, NJ
- Washington D.C.
- Pittsburgh, PA
- Boston, MA
- Philadelphia, PA
By comparing these lists, you can see that some cities and some states show up more often than the rest. When making your own list of places to live, make sure all four factors are taken into consideration. Make your lists and cross-check them to see if a pattern appears to find the best city for you. Remember, you’re not just looking for an extended dorm-room stay. You’re looking to settle in and create the foundation for your future. The setting you choose can ease or complicate how you build it.
