Phoenix has emerged as a top contender for affluent millennials, securing the third position in a recent evaluation of 73 metropolitan areas. This insightful analysis conducted by Trust & Will (https://trustandwill.com/) delves into key factors such as employment opportunities, income levels, asset accumulation, housing market conditions, and real estate trends, ultimately highlighting where millennials are currently generating wealth and identifying regions poised for future economic growth.
Locally, Phoenix-Mesa-Chandler showcases impressive indicators: it has experienced a remarkable five-year GDP growth of 51.54%, ranking fourth overall. Additionally, building permits have surged by 31.29%, placing it sixth in this category, while startup density stands at an impressive 26,894, ranking it eleventh. The millennial population density is also noteworthy at 21.39%. However, there are areas that require attention, such as employment growth at 9.65% (ranked 24th) and high-income tax filers at 5.61% (ranked 30th).
For those curious about the housing market, check out our detailed forecast for Phoenix in 2026 here: (https://azbigmedia.com/real-estate/here-is-the-outlook-for-phoenixs-2026-housing-market/).
In related news, TSMC Arizona is gearing up to train workers for a future in the chip manufacturing industry (https://azbigmedia.com/business/tsmc-arizona-preparing-workers-for-a-chips-future/).
Millennials today are stepping into a financial landscape like no other. Projections suggest that around $124 trillion will be passed down to younger generations over the next two decades. This significant transfer of wealth will not only shape their careers and home-buying decisions but also play a crucial role in local economic development. As this generation prepares to inherit a substantial portion of what is being termed the Great Wealth Transfer, understanding how to manage and grow this wealth is essential.
The study by Trust & Will (https://trustandwill.com/) examined eight critical metrics across the most populated U.S. metros to determine where affluent millennials are currently living and which areas are likely to thrive in the future. The Index takes into account local GDP growth, employment changes for individuals aged 25 to 44, shifts in median household income, new startup formations, the number of high-income earners, and high-value asset holders. It also considers two housing indicators: the Zillow Home Value Index and the trend of building permits over the past five years.
Interestingly, the top ten cities demonstrating the best performance in supporting affluent millennials predominantly lie in the South and West regions of the United States. This observation reflects current economic conditions rather than a shift in migration patterns.
As millennials stand on the brink of inheriting and managing larger, more complex assets, preparation becomes vital. Establishing clear beneficiary designations, maintaining an updated will or trust, and formulating a straightforward plan for immediate financial management can prevent potential pitfalls when wealth begins to transfer.
Top 5 Cities for Affluent Millennials:
1) Austin–Round Rock–San Marcos, TX
- Overall Rank: 1
- Millennial Population Density: 25.84%
- Economic Indicators Rank: 5
- 5-year GDP Growth: 63.50% (#1)
- Employment Change: 19.38% (#2)
- Median HH Income Change: 23.45% (#33)
- Startup Density: 16,876 (#21)
- Wealth Concentration Rank: 8
- High-Income Tax Filers: 9.39% (#7)
- High Value Asset Indicator: 12.80% (#15)
- Housing & Real Estate Rank: 10
- Zillow Home Value Index: $451,858 (#25)
- Real Estate Permits Change: 22.54% (#17)
- Austin’s strengths lie in its GDP growth (#1) and prime-age employment rates (#2), both within the top 3% of the study. Although median income growth ranks lower at #33, the city remains attractive due to its vibrant economy and construction prospects.
2) Raleigh–Cary, NC
- Overall Rank: 2
- Millennial Population Density: 21.59%
- Economic Indicators Rank: 8
- 5-year GDP Growth: 46.45% (#10)
- Employment Change: 11.55% (#16)
- Median HH Income Change: 25.17% (#21)
- Startup Density: 8,188 (#36)
- Wealth Concentration Rank: 11
- High-Income Tax Filers: 8.46% (#8)
- High Value Asset Indicator: 3.46% (#41)
- Housing & Real Estate Rank: 11
- Zillow Home Value Index: $450,409 (#26)
- Real Estate Permits Change: 22.64% (#16)
- Raleigh's economic balance and steady growth make it a compelling choice for young professionals, though it faces challenges in the area of high-value assets.
3) Phoenix–Mesa–Chandler, AZ
- Overall Rank: 3
- Millennial Population Density: 21.39%
- Economic Indicators Rank: 6
- 5-year GDP Growth: 51.54% (#4)
- Employment Change: 9.65% (#24)
- Median HH Income Change: 24.93% (#22)
- Startup Density: 26,894 (#11)
- Wealth Concentration Rank: 26
- High-Income Tax Filers: 5.61% (#30)
- High Value Asset Indicator: 13.82% (#14)
- Housing & Real Estate Rank: 7
- Zillow Home Value Index: $456,834 (#24)
- Real Estate Permits Change: 31.29% (#6)
- Phoenix showcases a blend of robust economic development and entrepreneurial spirit, although it still grapples with challenges in employment growth and the concentration of high-income earners.
4) Boise City, ID
- Overall Rank: 4
- Millennial Population Density: 20.97%
- Economic Indicators Rank: 4
- 5-year GDP Growth: 56.26% (#2)
- Employment Change: 15.77% (#4)
- Median HH Income Change: 26.23% (#14)
- Startup Density: 6,400 (#44)
- Wealth Concentration Rank: 32
- High-Income Tax Filers: 5.66% (#29)
- High Value Asset Indicator: 2.11% (#54)
- Housing & Real Estate Rank: 13
- Zillow Home Value Index: $493,999 (#19)
- Real Estate Permits Change: 9.85% (#31)
- Boise’s rapid economic growth, alongside stable housing prices, illustrates how emerging markets can prosper even with lower wealth concentrations.
5) Denver–Aurora–Centennial, CO
- Overall Rank: 5
- Millennial Population Density: 25.36%
- Economic Indicators Rank: 14
- 5-year GDP Growth: 44.77% (#13)
- Employment Change: 9.19% (#27)
- Median HH Income Change: 23.59% (#30)
- Startup Density: 20,425 (#17)
- Wealth Concentration Rank: 9
- High-Income Tax Filers: 8.23% (#10)
- High Value Asset Indicator: 10.49% (#20)
- Housing & Real Estate Rank: 15
- Zillow Home Value Index: $592,884 (#11)
- Real Estate Permits Change: -5.23% (#48)
- Denver’s strength lies in its wealth concentration and high-value properties, despite facing declining real estate permit activity, highlighting the trade-offs between high costs and strong networks.
