Phoenix: A Top Choice for Affluent Millennials
A recent study by Trust & Will has ranked 73 metropolitan areas in the U.S. based on their appeal to affluent millennials. Phoenix-Mesa-Chandler secured the No. 3 spot, showcasing its potential for wealth accumulation and future growth. Here's a breakdown of why this city is attracting millennials:
Local Economic Indicators
- GDP Growth: Phoenix boasts an impressive 51.54% five-year GDP growth, ranking 4th among the top metros. This indicates a thriving local economy.
- Building Permits: The city has seen a 31.29% increase in building permits over the past five years, ranking 6th, which suggests a robust construction sector.
- Startup Density: With 26,894 startups, Phoenix ranks 11th, indicating a vibrant entrepreneurial ecosystem.
- Millennial Population: The millennial population density is 21.39%, which is a significant portion of the city's population.
Areas to Watch
- Employment Growth: Phoenix's employment growth of 9.65% ranks 24th, indicating a steady increase in job opportunities.
- High-Income Filers: The city has 5.61% high-income filers, ranking 30th, suggesting a growing affluent population.
The Great Wealth Transfer
Millennials are set to inherit a substantial amount of wealth, estimated at around $124 trillion over the next two decades. This transfer will significantly impact their financial decisions, including career choices, home purchases, investments, and local economic development.
Trust & Will's Analysis
Trust & Will analyzed eight key indicators across the 73 most populated millennial U.S. metros to identify the top cities. These indicators include GDP growth, employment for people aged 25-44, median household income growth, startup activity, high-income filers, high-value asset holders, and housing market trends.
Top 5 Cities for Affluent Millennials
- Austin-Round Rock-San Marcos, TX: This city boasts the highest GDP growth and prime-age employment rates, making it an attractive destination for millennials seeking economic opportunities.
- Raleigh-Cary, NC: Raleigh offers a balanced economic base with steady wealth signals and an active building pipeline.
- Phoenix-Mesa-Chandler, AZ: Phoenix combines a strong construction pipeline, entrepreneurship, and solid wealth density, making it an appealing choice for millennials.
- Boise City, ID: Boise showcases how fast growth and stable housing values can offset thinner legacy wealth.
- Denver-Aurora-Centennial, CO: Denver stands out for its depth of wealth, with strong networks and higher prices.
Preparing for the Wealth Transfer
As the large-scale wealth transfer approaches, it's crucial for millennials to prepare. This includes having clear beneficiary designations, updating wills or trusts, and creating a plan for immediate financial decisions to avoid mistakes when the money starts moving.
