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Millennials are the first generation to grow up in the internet age. Thanks to the easy access to information online, millennials feel comfortable moving to a new job, apartment or city when they want a change.
Unfortunately, millennials are also struggling more financially than the generations before them. They have higher living costs, more student loan debt and stagnant wages. Of course, the average cost of living isn’t the same for every state. This state-by-state guide looks at factors like the job market, affordable rent and housing income to determine the top contenders. Here are the 13 best states for millennials just starting out.
Arkansas has the lowest rental averages in the country. You can expect to pay as little as $591 for one-bedroom apartment. In comparison, a state like California costs almost three times as much for a one-bedroom rental at $1,487. Not only is rent cheap, but the state also has a lot of rental openings, so finding a place is never too challenging.
Once you get to Arkansas and locate an affordable place to live, you’ll probably find you can meet friends and get a job quickly too. Arkansas ranks high for having a young adult population and for its percentage of employed young adults.
Arkansas may not be the trendiest state, but if you want a job and an affordable place to live, you can probably easily secure both here.
Colorado is one of the top five states for the highest percentage of millennials. This state has many appealing features that have been drawing young people in recent years. In 2020, unemployment sat at about four percent, lower than most other states. In particular, Colorado is known for having lot of jobs in the finance and information sectors.
Rent here isn’t low (a one-bedroom averages $1,172), but there is an 11 percent homeownership rate. And perhaps most importantly, Colorado is considered a tax-friendly state. The state has a flat-rate income tax that was only 4.5 percent in 2021. Additionally, property taxes here are among the lowest in the country.
Colorado might be a great choice for millennials looking to establish roots long-term. You can secure employment and save for homeownership. You’ll also be around a lot of people your own age, which is always an added benefit.
Idaho checks a lot of boxes when it comes to millennial living. First, the rent here is some of the most affordable in the country. The cost for a one-bedroom apartment averages $660.
And in 2021, Idaho maintained a steady, low unemployment rate of three percent or less. The U.S. Bureau of Labor Statistics reported a low unemployment rate of 2.6 percent in November 2021.
Overall, Idaho is considered a tax-friendly state. While the income tax rate can be high (6.5 percent for the top rate), taxes are low in other areas, such as property taxes, while the gasoline taxes and sales tax are average. Additionally, Idaho doesn’t have an inheritance or estate tax.
If you’re looking for low rent, reasonable taxes and an easy job search, Idaho might be the best state for you.
Iowa has a few things going for it that may make it attractive to millennials. The rent is incredibly affordable, with a one-bedroom rental averaging only $647. If you’re more interested in buying, Iowa also boasts relatively high 13 percent homeownership rate.
In addition to affordable living, Iowa’s job market is up-and-coming. The state ranked highly for young adult employment and had low three percent unemployment rate in 2020.
You can move to Iowa and feel confident you’ll be able to secure affordable housing and get a job.
Kansas is a vibrant state that attracts — and keeps — many millennials. It’s rare that such a bustling area has affordable rates, but that’s the case here. The average rent for a one-bedroom apartment is $688. Rent availability is also high, so finding place to live shouldn’t be too difficult. If you’re looking to set more permanent roots and buy property, Kansas has a relatively high homeownership percentage at 12 percent.
Along with an overall good housing situation, the unemployment rates are favorable in Kansas too. In 2020, the state reported a four percent unemployment rate, lower than many other states.
Millennials should check out Kansas if they’re searching for a fun state that still comes with a low cost of living and good employment opportunities.
Massachusetts is a fantastic place to live. Millennials are clearly figuring that out because the state ranks high for having a young adult employment rate. Millennials looking to try this state don’t have to worry they’ll have trouble finding job. This great state also ranks highly for internet connectivity and high average earnings.
Unfortunately, the state doesn’t rank very well for housing costs. It ranked 49th for housing affordability, only beat out by Hawaii and California.
All this adds up to Massachusetts being perfect for millennials looking for work—just be sure to bring a friend with you to share housing costs.
The people of Minnesota are known for being friendly and accommodating. And while that may help attract some people, millennials are choosing to move to Minnesota for financial reasons. The state has relatively cheap rental prices, with a one-bedroom averaging $907 per month, and great millennial employment opportunities.
Another positive sign is the high percentage of homeownership, which sits at 12 percent. This implies that the transition from renting to buying a home isn’t as challenging as in some other states (such as Hawaii or Florida, both with homeownership percentages at half of Minnesota’s).
Lastly, Minnesota reported a relatively low three percent unemployment rate in 2020.
If you’re looking to move somewhere new and need to prioritize low rent and good employment opportunities, Minnesota can deliver. If you end up loving it here, the journey from renting to homeownership should be doable.
New Hampshire has become an appealing new home for many millennials. In 2020, the state’s young population grew by 1.9 percent. Overall, the state had a net migration rate of 0.4 percent, above the national average of 0.2 percent.
So, why are millennials moving to New Hampshire? There are a few reasons we can pinpoint. First, this beautiful state is actually quite affordable, with a one-bedroom apartment going for $967 on average. The other major appeal of New Hampshire is the taxes. This state charges no personal income tax or sales tax! However, note that you will have some high property taxes if you become a homeowner.
It’s clear why millennials are moving to New Hampshire — the affordable rent and taxes mean people can live comfortably, pay off debts and save for the future.
North Dakota may not have the thriving, fun reputation of states like California or New York, but it’s doing surprisingly well with millennials. The biggest attraction here is the job market. This state has the best employment rate for the 16 to 24 age group in the U.S. And, likely due to these jobs, it’s now a state that also ranks as having a large population of young adults.
There are other financial benefits to moving to North Dakota, too. Renting a one-bedroom apartment comes at the affordable price of just $702 per month. North Dakota also ranks third in the country for best rental availability, so securing that cheap apartment won’t be problem. Lastly, the state’s income tax and sales tax are below average, making it a very tax-friendly state.
If you’re looking for a quick move, North Dakota might be the right fit. You should find it relatively easy to find a job and an apartment, and you’ll also find lots of other young people to mingle with.
South Dakota has the third-lowest rent in the country, after Arkansas and West Virginia. On average, you can expect to pay just $616 for one-bedroom apartment. If you’re not a renter or you’re looking to transition into homeownership sometime soon, South Dakota is promising. It holds 14 percent homeownership rate, one of the highest in the country.
A few other factors have drawn millennials to the Mount Rushmore state. Most notably, this state has no income tax and lower-than-average sales taxes and state taxes.
South Dakota may not have a young reputation, but that’ll likely change soon. Between the low rent, easier route to homeownership and low taxes, this state is becoming a millennial haven.
In 2021, Utah’s growth in the population of people aged 25-29 increased by 3.68 percent. It seems the job market is bringing in most of this migration, as Utah ranked first in the country for its economy with a 2.5 percent job growth percentage. Utah also ranks well for the percentage of jobs available in information and finance.
Other appealing factors include Utah’s affordable college tuition, high young adult employment, high internet connectivity rate and flat-rate income tax. All this has led to massive influx of young people — almost 20 percent of the population falls into the 16-24 age category.
People looking for a strong job market and thriving young population will find everything they need in Utah.
In 2021, Washington saw a 2.16 percent growth rate in its young adult population. Most likely the primary motivator for people to move here is how tax-friendly the state is. Washington is a no-income-tax state, which can be really incentivizing.
Additionally, Washington boasts a pretty high homeownership rate of 10 percent. While renting isn’t overly cheap, the transition from renting to being homeowner may be more likely here.
Millennials who value tax-friendly states and hope to become homeowners soon can benefit from living in Washington.
There are many incentives for millennials to move to the Cowboy State. The affordability of college tuition is second to none, and housing is incredibly affordable, with one-bedroom going for $664 on average per month. Rent availability is also high, so you won’t have too much trouble securing a place to live.
The other significant advantage to Wyoming is that it’s such a tax-friendly state. Not only does Wyoming have no income tax, but it also has the eighth-lowest combined state and local sales tax rate in the country. Property taxes are low here too!
If your priorities are affordable and available housing, low-cost tuition and low taxes, Wyoming is a great place to move to.
If you’re considering moving to these states, do some research on the location you’re moving to and get your finances in order if possible.
Making smart financial decisions, including living in an affordable state, is one of the many ways you can take care of your financial health. Of course, personal finance doesn’t end at finding great deal on rent and a secure job. Make sure you also prioritize paying down debts, repairing your credit and saving for the future.
Note: The information provided on CreditRepair.com does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only.
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