Best Places For Young Professionals To Live In The U.S. In 2024 – Forbes Advisor

Where you choose to live impacts everything from your job opportunities to your ability to save money, and for individuals focused on building both their careers and strong financial foundations, there’s a lot at stake. Many young professionals struggle to balance lifestyle desires with long-term financial stability amidst rising prices, economic uncertainty and more.

To determine the best places for young professionals to live, Forbes Advisor compared the 100 most populous U.S. metro areas  (99 of which had available data) across 12 metrics within four key categories: employment and pay, housing affordability, cost of living and lifestyle.

Top 10 U.S. Metros for Young Professionals

1. Cincinnati, OH-KY-IN Metro Area

If you’re in the early stages of your career and hunting for an affordable spot to call home, the Cincinnati area is worth considering. It ranks sixth for median rental costs as a percentage of individual income and seventh for median home costs as a percentage of household income.

Cincinnati doesn’t just have economical housing going for it—it offers excellent income-earning potential, too. The median individual salary in this area is around $59,329, placing it in the top 40 among the 99 metro areas considered.

Plus, Cincinnati boasts a relatively high number of food and dining establishments per capita, ranking 23rd for this metric. Whether you’re a fan of Southern barbecue or enjoy sampling varied international cuisines, you’ll have no trouble indulging in delicious food here.

For those who enjoy a good workout, the metro ranks 25th for fitness establishments per capita.

2. Des Moines-West Des Moines, IA Metro Area

Nestled at the confluence of the Des Moines and Raccoon Rivers, Des Moines is Iowa’s largest city by land area and population, with roughly 729,053 residents.

You can find many budget-friendly housing options in this metro, which is ranked eighth-lowest for median rent as a percentage of the median individual income. The average rental in Des Moines costs $1,057 per month. And if you’re ready to settle down, this metropolitan area makes home ownership achievable. It has the 17th-lowest median home ownership costs as a percentage of income (24.72%).

The Des Moines area doesn’t disappoint in terms of earning potential, either. With a 9.57% increase in individual incomes from 2021 to 2022, Des Moines secured the fourth-highest spot for this metric.

As one of the fastest-growing cities in the Midwest, it’s easy to keep yourself busy in Des Moines as a young professional. Gym-goers will thrive in the Des Moines metro area since it has the 15th-highest number of fitness establishments per capita.

3. Madison, WI Metro Area

The Madison metropolitan area is known for its breathtaking lakes, university culture and thriving tech scene.

Young professionals looking for employment here can expect decent earnings, with a median individual income of $63,511, ranking the region 21st highest in this metric. Unemployment here sits at a mere 2%, the lowest nationally.

You can expect to spend approximately 23.13% of the median individual income on rent here, which is below average. Becoming a homeowner in this area, however, is a bit more challenging than most of the other metros that made the top ten. Median homeownership costs amount to 27.57% of the median income.

Madison isn’t just about work, though—it’s also a playground for young professionals. It ranks third for most fitness establishments per capita and seventh for entertainment.

4. Dayton-Kettering, OH Metro Area

A rich cultural scene, high earning potential and low local taxes and rent costs make Dayton-Kettering an ideal spot for young professionals to live and work.

If you’re looking to rent in the Dayton-Kettering area, you’ll be happy to learn that it ranks fourth-lowest for median rent costs as a percentage of income (19.95%). Homeownership here isn’t too expensive either. The area ranks 21st for the lowest median home cost as a percentage of income (24.77%).

Besides affordable housing, the local taxes in the Dayton-Kettering area are relatively low, averaging just $5,214 per year for an individual—the fifth lowest for this metric. Plus, with a 9.25% year-over-year increase in individual income, you can expect your money to stretch further here compared to other areas.

When the workday ends in Dayton-Kettering, the fun begins. The metro ranked 16th for most food and drink establishments per 100,000 residents, offering no shortage of options to unwind and indulge after a long day.

5. Columbus, OH Metro Area

Home to various cultural attractions, a thriving job market and a Big Ten Conference football team, Columbus has something for everyone.

If you’re a young adult ready to elevate your earning potential, the median individual income in Columbus hovers around $60,509, placing it in the top 30 among the 99 metro areas analyzed. Plus, individual earnings in the area increased by 6.20% between 2021 and 2022.

Newcomers who wish to rent in this area can expect relatively low average monthly rent costs of $1,186. Homeownership can also be affordable, with the median home price at $289,200. Putting down roots in Columbus is much more feasible for young professionals than in many larger metro areas.

And if having fun and staying fit are your top priorities, you won’t be disappointed here. Columbus ranks 14th for most food and drink establishments per capita and 18th for most fitness establishments per capita.

6. Omaha-Council Bluffs, NE-IA Metro Area

If you’re looking to rent a spot in “The Gateway to the West,” you’ll only need to shell out around $1,102 per month—roughly 22% of the area’s median income. The metro area ranked 18th for the lowest average rent as a percentage of income.

Those considering becoming a homeowner in the Omaha-Council Bluffs metro area should expect to spend around 26% of the median annual income on home ownership costs. The median home price here is $262,700.

Young professionals in this metro area earn median salaries of about $59,163 with a 7% income growth rate year-over-year. Plus, with an unemployment rate of just 3%, finding a job should be relatively easy.

For those looking to stay fit, Omaha-Council Bluffs is the place to be. It ranks seventh for most fitness establishments per capita.

7. Milwaukee-Waukesha, WI Metro Area

In addition to its multitude of frozen custard shops, the Milwaukee metropolitan area is known for having a rich brewing heritage, cultural festivals and a vibrant arts scene.

Young professionals looking to rent in this metro area can expect to spend just 21.46% of the median individual income on rent costs. Homeownership, on the other hand, is slightly less attainable here compared to other places on this list, as the median home costs $289,600, and people spend 28.94% of the median household income on home ownership costs.

When it comes to earning potential, professionals earn a median individual income of $58,938 in Milwaukee. Unemployment is minimal at 2.80%, ranking this metro area fourth for this metric.

There is no shortage of gyms in this area, either, with Milwaukee ranking 17th for most fitness establishments per capita.

8. Indianapolis-Carmel-Anderson, IN Metro Area

If you prefer a bustling metropolis over a small town, consider moving to the Indianapolis-Carmel-Anderson metropolitan area. With over two million residents, it’s one of the biggest cities on our list.

Renting in Indianapolis will run you $1,092 per month on average, around 22.83% of the median individual income here. And with homeowners paying only 22.95% of the median household income toward homeownership costs, buying property in Indianapolis isn’t out of reach.

In this metropolitan area, working adults can expect a median individual income of about $57,399, with a 7.69% increase in earnings year-over-year.

The median age in Indianapolis is 37 years old, the 23rd lowest in the nation, which means it’s ideal for young professionals who want to work and socialize with peers. And if you love to have fun and stay active on the weekends, the area ranks 30th for entertainment and fitness establishments per capita.

9. Pittsburgh, PA Metro Area

Located at the junction of three rivers, the Pittsburgh metro area is best known for its industrial history and champion sports franchises.

Professionals seeking employment in this metropolis can expect a median individual income of about $60,510, ranking in the top 30 for this metric nationwide. Plus, Pittsburgh has the lowest median rental costs as a percentage of median individual income at 19.12%, making this an excellent place for young adults to establish themselves without breaking the bank.

Homeownership is also within reach in Pittsburgh, with housing costs accounting for 24.58% of income, ranking 14th lowest across the 99 metros considered.

And when it’s time to let loose and enjoy yourself, Pittsburgh offers plenty of options—ranking 22nd for most entertainment establishments per capita.

10. Fayetteville-Springdale-Rogers, AR Metro Area

While the median individual income in the Fayetteville-Springdale-Rogers metro area is the lowest among the top ten places for young professionals at $52,463, the area’s low cost of living helps stretch that income further.

If you’re a young professional considering relocating here, you can expect to spend approximately 23.06% of the median individual income on rent, placing the area 26th lowest in this metric. The median home price here is $291,600, and homeownership costs amount to 24.55% of median income, making the Fayetteville metro the 13th most affordable in this regard.

The area saw a solid 8.16% increase in the median individual income between 2021 and 2022, ranking ninth-highest for this change. Jobseekers will also be pleased to find that the unemployment rate in this metro area is only 2.90%, landing it in the ninth-best spot for this metric.

Budgeting for Living in a Metropolitan Area

Living in an expensive metropolitan area can be financially stressful, but there are many savvy ways to save money. Here are some budgeting tips to help you thrive in a populous area without breaking the bank.

• Take advantage of public transportation. Owning a car can be a significant financial burden anywhere, but especially in a city where parking fees and gas tend to cost more. Opt for public transportation if you don’t need a car to get around. Most metropolitan areas offer extensive bus, subway and commuter rail systems that can get you where you need to go at a fraction of the cost.
• Apply the 50-30-20 budgeting rule. The 50-30-20 budgeting rule involves allocating 50% of your income to needs like rent and groceries, 30% to wants like dining out and entertainment and 20% to saving and debt repayment. Let’s say you make $5,000 after taxes each month. Using a budget calculator, this rule would have you put $2,500 toward needs, $1,500 toward wants and $1,000 toward saving and debt repayment.
• Consider getting a roommate. Living in a city often means high rent prices. Slash those costs in half by getting a roommate. While sharing your living space with another person may not be ideal, you’ll have more money to put toward a nicer place in the long run.
• Cook more meals at home. Frequently dining out and ordering Uber Eats in a metropolitan area can drain your wallet. Cooking meals at home is a simple way to trim your expenses.

Tips for Maximizing Savings

As a young professional, making ends meet can be challenging enough, let alone finding room to set aside savings each month. Here are some strategies to beef up your savings.

• Automate as much as possible. If you’re struggling to stay consistent when saving money, try automating your savings. Set up recurring transfers into your savings account each time you receive your paycheck so you don’t accidentally spend that money elsewhere.
• Set a SMART money goal. It’s much easier to achieve your savings goals when you make them as specific as possible, and the SMART goal framework is an excellent way to do just that. SMART stands for specific, measurable, achievable, relevant and time-bound. Here’s an example of what a SMART money goal could look like: “Within the next 15 months, I want to build an emergency fund of $18,000 to cover at least six months of expenses if needed.” Don’t forget to use a budgeting app like YNAB or PocketGuard to set your financial goals and track your progress toward them.
• Put your money in a high-yield savings account or CD. To protect your money’s purchasing power, consider putting it in an account that offers better rates than traditional savings accounts. The best high-yield savings accounts can pay rates well above what you’d get at a traditional bank, and they’re usually free. If you don’t need to touch your savings for a while, you can also consider CDs. The best CD rates can be even higher than savings account rates, but you have to leave your money in a CD account until it matures.
• Set boundaries around when you can access your savings. “Set some ground rules on when you’ll use your savings,” recommends Taylor. She advises against letting your savings become just another account you spend from by setting limits around what the money can be spent on or how frequently you’ll tap into it.
• Get out of high-interest debt. If you’ve got high-interest debt, like credit card debt, the interest charges can quickly wipe out any progress you make toward saving. Before stashing money in savings, focus on paying off this high-interest debt. The debt avalanche and debt snowball methods are two effective ways to chip away at what you owe. Consolidating high-interest debt or using a balance transfer card can help you streamline repayment and reduce interest expenses.

Methodology

To determine the best places for young professionals, Forbes Advisor examined data for the 100 most populous metro areas (99 of which had available data) in the U.S. across four categories: employment & pay, housing affordability, cost of living and lifestyle.

We considered 12 relevant metrics that are listed below with their corresponding weights:

Employment and Pay (27.50% of total score)

• Median individual income (15% of total score): Data comes from the U.S. Census Bureau’s 2022 1-year American Community Survey.
• Unemployment rate (7.50% of total score): Data from the U.S. Bureau of Labor Statistics.
• One-Year Percentage Change in Individual Earnings (5% of total score): Data comes from the U.S. Census Bureau and reflects a change from 2021 to 2022.

Housing Affordability (22.50% of total score)

• Median Rent Costs as a Percent of Median Individual Income (Renters) (15% of total score): Data comes from the U.S. Census Bureau’s 2022 1-year American Community Survey.
• Median Home Costs for Homeowners With a Mortgage as a Percent of Median Household Income (Homeowners) (7.50% of total score): Data comes from the U.S. Census Bureau’s 2022 1-year American Community Survey.

Cost of Living (22.50% of total score)

• Living Wage (15% of total score): Defined as an estimated local hourly wage rate. Data is from the MIT Living Wage Calculator.
• Local/State Annual Taxes (4.50% of total score): Data is from the MIT Living Wage Calculator.
• Property taxes as a Percent of Median Home Value ( 3% of total score): Data comes from the U.S. Census Bureau 2022 1-year American Community Survey.

Lifestyle (27.50% of total score)

• Median resident age (10%): Data comes from the U.S. Census Bureau’s 2022 1-year American Community Survey.
• Food and drink establishments per 100,000 residents (7.5% of total score): Data comes from the County Business Patterns CBP survey from the U.S. Census Bureau.
• Arts and entertainment establishments per 100,000 residents (5% of total score): Data comes from the County Business Patterns (CBP) survey from the U.S. Census Bureau.
• Fitness establishments per 1000 establishments (5% of total score): Data comes from the County Business Patterns (CBP) survey from the U.S. Census Bureau.

Based on these 12 metrics and the weighting outlined above, we ranked the 99 metro areas.