Affluent Millennials Flock to Cities

Contrary to popular perception, the Millennial Generation appears to be doing just fine, thank you.

Sure, a lot of Millennials (ages 22-34) are still living at home with their parents, struggling to save money for an apartment or a down payment while paying off student loans. But Emily Heffter, who writes about real estate trends and data for Zillow Inc., Seattle, says not everyone in the demographic is scraping by.

“Whether they made their money lobbying lawmakers at the Capitol or cashed in on a tech IPO, rich millennials are clustered in cities where there are lots of high-paying professional jobs,” Heffter wrote in a new blog (http://www.zillow.com/blog/where-affluent-millennials-live-194108/). “Tech hubs made the list, but young people are doing well in older job markets, too.”

The entry, Young and Rich: Where Affluent Millennials Live, identifies 10 cities favored by wealthy young adults are heavy with high-paying, professional jobs, where Millennial households make $350,000 a year or more:

1. Arlington, Va. Heffter said 8.7 percent of millennials in this D.C. suburb made more than $350,000–a bigger share than the percentage of people 55 and older making that much money (7.9 percent). Median home value: $607,100; Median rent: $2,690.

2. San Francisco. Similar to Arlington, .8 percent of the city’s millennials make more than $350,000, many in the tech sector. On the flip side, the median rent is more than $4,500. Median home value: $1.130 million.

3. Huntington Beach, Calif. Just over 5 percent of millennials who live there made more than $350,000. Median home value: $733,200; Median rent: $2,902.

4. (tie) Sunnyvale, Calif. A Silicon Valley hot spot, with a median home value of $1.3 million. Of Sunnyvale millennials, 3.9 percent made more than $350,000. Median rent: $3,877.

4. (tie) Seattle. Another tech center with quickly rising rents and home values; 3.9 percent of millennials make more than $350,000. Median home value: $533,000; Median rent: $2,364.

5. Pasadena, Calif. Of millennials, 3.3 percent made more than $350,000. Median home value: $714,300; Median rent: $2,619.

6. Denver. One of the hottest markets, with an influx of energy, finance and tech jobs. Nearly 3 percent of millennials made more than $350,000. Median home value: $331,100; Median rent: $1,942.

7. Cambridge, Mass. While 2.9 percent of millennials make more than $350,000, thanks to tech and biotech jobs, they aren’t the only ones–7.7 percent of those 55 and older also make more than $350,000. Median home value: $644,400; Median rent: $2,604.

8. (tie) Washington, D.C. Of millennials there, 2.8 percent bring home more than $350,000 a year, half the percentage of wealthy people aged 55-plus in Washington. Median home value: $499,300; Median rent: $2,534.

8. (tie) New York. The country’s biggest job market–along with inherited wealth and old money–helped 2.8 percent of young people living there make more than $350,000 a year. Median home value: $612,400; Median rent: $2,336.

9. Oakland. 2.6 percent of millennials made more than $350,000. Median home value: $586,800; Median rent: $2,707.

10. Jersey City, N.J. Near enough to New York to commute by train to Wall Street, and home to banks and other high-paying employers, boosting 2.2 percent of millennials who live there into an annual income of more than $350,000. Median home value: $345,800; Median rent: $2,180.