DFW is a Millennial Money Magnet

DALLAS—In almost all areas, unemployment is extremely low, at 4.2%. And Millennials (those aged 25 to 34 years old) shaping the current workforce, are in high demand. According to the Bureau of Labor Statistics, unemployment for that demographic is even lower at 3.9%.

Furthermore, wages have begun to move up at this point in the cycle for many jobs. Based on a recent study by JLL, the average US household income is now $83,700, and Millennials, many who are beginning or in the early stages of their careers, are not far behind at $75,400.

Overall, incomes are up from when JLL last investigated this topic a couple of years ago, with some significant differences between the top 45 markets. For example, in the San Francisco Bay Area, the average Millennial household earns close to $115,000 annually. Likewise, Boston and Washington, DC both have broken the $100,000 mark.

Cost of living, however, is an important factor in these high-growth areas. Using the Council for Community and Economic Research, living costs in these areas are 150% to almost 200% higher than the US average.

While most other markets are less extreme, understanding a local area’s cost of living is critical in assessing the livability of an area. Overall, job opportunity and income is a delicate balance, especially for Millennials who are beginning careers, thinking of starting families and paying off sizable student loan debt.

So, where is the value of a dollar the highest for these Millennial households? JLL identified select markets that have been showing strong vitality in job gains, as well as more modest growth engines.  Then the study compared local Millennial incomes to the US Millennial average to provide a more comprehensive view of the numbers when comparing one metro to another. To be fair, many other medium to smaller markets have good incomes and lower costs of living, but the scale of growth in these markets can limit job opportunities for Millennials entering the workforce and progressively advancing careers.

In examining these markets, the Texas markets came out on top. This is due to above-average incomes, combined with a much lower cost of living–driven mostly by more affordable housing prices and apartment rents and no personal state income tax. The Texas metros are also fast growing from a jobs perspective. As such, opportunities abound across industries and across different labor classes.

In terms of the base numbers–the average income of a Millennial will feel $1,100 to $7,300 higher in Texas than the US average–which means a dollar goes farther–with a higher quality of life.

From a talent pipeline perspective, both talent acquisition and retention, these differences are critical in recruiting across all industries. Interestingly, DFW and the other major Texas markets, can be viewed as prospective catalysts or money magnets for the working Millennial, with more job opportunities and career advancement, along with above-average spending power.

“The power of Millennial money is not only a magnet for the Millennial but also for the company that seeks out the Millennial/next generation workforce,” Conor McCarthy, senior vice president with JLL’s tenant rep team in Dallas, tells GlobeSt.com. “DFW is on the shortlist for the majority of companies looking to relocate, expand operations or establish a centrally located regional office, and the low cost of living, and ability to attract and retain the Millennial workforce are major drivers. In addition, the diversity of industry types throughout the region provide an opportunity for Millennials to find an opportunity that best suits their skillsets without having to live paycheck to paycheck.”