Across large U.S. cities, millennials earn an average of 8.8% more than the overall median household income, a new SmartAsset study found. But in some places, that gap is much wider, especially in cities like Jersey City, New Jersey, and Berkeley, California.
Jersey City ranks first among major U.S. cities for millennial earnings, with residents ages 25 to 44 earning about 42.4% more than the local median household income. The median millennial household income there is around $143,500, compared to $100,751 for all households.
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A major advantage of Jersey City is its location. It sits right across the river from Manhattan, and residents there have access to high-paying finance, tech and corporate jobs in New York City. That proximity gives Jersey City millennials the chance to earn a lucrative salary while living just outside one of the country's most expensive job markets.
Berkeley ranks right behind Jersey City, with millennial residents earning an average of $146,987, which is more than the median millennial household income of $103,727. This ranking isn’t too surprising given its close ties to Silicon Valley, major research institutions and the University of California.
California and Massachusetts are also at the top of the list when it comes to top-earning cities for millennials. These states host a large share of jobs in tech, education and professional services, which are all industries where younger professionals are thriving.
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What This Means for Millennials
What this study shows is that where you live does matter when it comes to earning potential. Being in or near a major economic hub like Jersey City and Berkeley will give you a higher chance of earning higher pay since you're in close proximity to industries such as tech, finance, and research.
That said, not every city offers that kind of advantage. In about 10% of cities studied, including Lafayette, Louisiana, and Santa Maria, California, millennials actually earn less than the overall median household income. If you're considering a move to one of those areas, look into job availability and career growth potential there before committing.
In other words, your zip code can have just as much influence on your financial future as your job title. So make sure your city is helping and not holding you back financially.
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