Young Professionals Are Eyeing These Cities: How It Could Impact Their Finances

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Gen Z and young professionals are more willing to move to a different city for the right job opportunity. According to data from college career network Handshake, New York City saw more job applications from students and recent graduates than any other city in the U.S. Although there may be more job opportunities in cities like New York, its higher cost of living could have a big impact on their long-term finances.

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Based on Handshake’s application data, the Big Apple saw 6.7 times more job applications between 2022-2023 compared to the same period in 2018-2019. The city also received twice as many applications as the next most popular, Chicago. While some cities have fallen in population recently, Handshake noted that the top 15 have overall remained consistent when comparing pre-pandemic and post-pandemic data. Here are the results:

• 1. New York City, New York

• 2. Chicago, Illinois

• 3. Dallas, Texas

• 4. Los Angeles, California

• 5. Atlanta, Georgia

• 6. Boston, Massachusetts

• 7. San Francisco, California

• 8. Austin, Texas

• 9. Washington, D.C.

• 10. Houston, Texas

• 11. Seattle, Washington

• 12. Denver, Colorado

• 13. Philadelphia, Pennsylvania

• 14. San Diego, California

• 15. Miami, Florida

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Job Opportunities Often Come at a Cost

While cities like New York typically offer better job opportunities and higher salaries, it could hurt younger generations’ long-term financial goals. According to a 2023 Charles Schwab survey, 36% of respondents said that living in New York “hurts” their ability to reach their financial goals as the overall “cost of living is too high.”

A recent study from SmartAsset showed that, on average, a family of four needs to make at least $318,406 to live comfortably in New York City. According to the U.S. Census Bureau, that’s more than three times the city’s median household income of $76,607, amNY reported. The publication also pointed out that NYC ranked first for the city with the highest salary needed for a single adult to live comfortably in the U.S., which is $138,570 per year — or $66.62 in hourly wages.

“Quality of life is not matching the high costs, not to mention taxes are some of the highest in the country,” New Yorker Vittorio Bugatti explained to amNY. “For people that are young like myself, it is definitely going to be more and more difficult for millennials and the upcoming generations to be able to afford the basic costs of living here in NYC.”

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This article originally appeared on GOBankingRates.com: Young Professionals Are Eyeing These Cities: How It Could Impact Their Finances