Show Me the Money
For the report, financial firm JLL combed through 2016 data on the average salary for 25- to 34-year-olds in the top 50 U.S. metros. Then, they adjusted income for cost of living and compared it to the average U.S. income ($67,900) to see how far millennial money goes in 21 select markets.
Austin leads the list with the most buying power, followed by San Antonio (No. 2), Houston (No. 4), and Dallas-Fort Worth (No. 7). The takeaway? While metros like Washington and San Francisco boast the highest salaries, salaries in Texas have more value.
"In Texas, the average income of a millennial will feel $1,000 to $7,300 higher than the U.S. average — which gives them more potential dollars available for spending, meaning the value of their money goes further," explains the report.
The salary for a millennial in Austin, says JLL, is $72,442, but it spends like $75,225. That's $7,325 above the U.S. average. On the flip side, a $100,000 salary in the Bay Area feels more like $54,000.
When adjusted for cost of living, a San Antonio salary of $63,902 is worth $74,827, and a Houston salary of $72,749 is worth $73,188. In DFW, a salary of $70,266 spends like $68,686, but it's still $1,000 higher than the national average.
The impressive buying power across Texas metros is attributed to our low cost of living, thriving local economies, and lack of state income tax.
"Major Texas markets can be viewed as prospective catalysts, or 'money magnets,' for the working millennial — where diverse job opportunities are growing, career advancement is high, and above average spending power puts you ahead of the your peers in other markets," notes JLL.