Young and Ambitious: The 10 Best States for Gen Z To Become Rich
With inflation and soaring costs of living making it harder than ever for young people to build wealth, finding the right place to get ahead can make a big difference. According to CreditDonkey (a financial review site), certain states offer the best opportunities for Gen Z to build wealth. By analyzing data from the U.S. Census Bureau on household income, housing prices, and unemployment rates for those under 25, the study unveils the states with the most (and least) earning potential. Here are the top 10.
1. South Dakota
Avg. Gen Z Household Income: $52,437
Median House Listing Price: $386,448
South Dakota ranks first with a 94.33% employment rate for Gen Zers and an average household income of $52,437. Compared to states like California, which was dead last, housing in this Midwestern state is much more affordable. The median rent is $716 for a one-bedroom apartment and $507 for a studio, with monthly housing costs totaling $946. With its favorable living conditions and high employment rates, South Dakota stands out as a top state for young adults looking to build wealth.
2. North Dakota
Avg. Gen Z Household Income: $50,046
Median House Listing Price: $368,295
Snagging the second spot is North Dakota, with the lowest unemployment rate for Gen Zers clocking in at 4.45%. With median monthly housing costs at $918, North Dakota offers a solid financial foundation for young adults. The average household income is $50,046 and housing costs are also manageable, with a median rent of $725 for a one-bedroom apartment. Studio apartments rent for $696, which allows for a comfortable living as well as a greater potential to save.
3. Iowa
Avg. Gen Z Household Income: $48,739
Median House Listing Price: $309,225
Ranking third is Iowa, which also offers a solid balance of affordable housing coupled with a stable job market. The average household income for those under 25 is $48,739, with one-bedroom apartments renting for $720 and studio apartments for $707. Though the unemployment rate for Gen Z is slightly higher at 7.06%, Iowa’s relatively low housing costs of $965 provide young people with more opportunities to maximize their earning potential and save more money in the process.
The Midwestern state is also home to “the best corn in the country,” according to my friend who grew up in Des Moines.
4. Arkansas
Avg. Gen Z Household Income: $46,447
Median House Listing Price: $299,900
Arkansas, known as the Natural State due to its abundant wildlife and picturesque scenery, took fourth place thanks to its affordable housing and living costs. The average household income for Gen Z is $46,447, and one-bedroom apartments rent for $669. Studio apartments are even more affordable at $661. With a relatively high unemployment rate of 8.82%, Arkansas still offers Gen Zers an opportunity to live comfortably while spending only $813 on average housing costs per month.
5. Wisconsin
Avg. Gen Z Household Income: $52,100
Median House Listing Price: $385,950
In addition to being known for its top-notch dairy products, Wisconsin offers a strong work-life balance coupled with affordable living costs. The average household income for those under 25 is $52,100. However, housing costs are slightly higher, with a median rent of $820 for a one-bedroom and $837 for a studio. Despite a 6.42% unemployment rate, the state provides a balanced lifestyle with monthly housing costs of $1,070, allowing young adults to spend less and save more.
6. Oklahoma
Avg. Gen Z Household Income: $44,089
Median House Listing Price: $300,000
Oklahoma came in sixth place with an average household income of $44,089 for Gen Zers. The median rent for a one-bedroom apartment is $772, while studio apartments rent for $720. With a median monthly housing cost of $923 and an unemployment rate of 8.02%, the Sooner State offers decent prospects for wealth-building, especially considering the low living expenses.
If you’re a basketball fan, you’ll also get hella bragging rights, as the OKC Thunder is arguably the best (and most consistent team) in the league. (Queue all the NBA haters coming for me.)
7. Nebraska
Avg. Gen Z Household Income: $45,260
Median House Listing Price: $359,950
Nebraska ranks seventh with an average household income of $45,260 for Gen Zers. Though housing is on the pricier side, with a median rent of $850 for a one-bedroom apartment and $768 for a studio, it’s still much cheaper compared to states like New York or Massachusetts. The unemployment rate for under-25s is also relatively low at 5.58%, and monthly housing costs total $1,064. These combined factors make Nebraska a sound choice for those seeking long-term financial growth.
8. West Virginia
Avg. Gen Z Household Income: $39,527
Median House Listing Price: $240,000
West Virginia ranks eighth due to its exceptionally affordable housing market, with a median house listing price of just $240,000. That’s unheard of in states like Oregon and California. That said, the average household income for Gen Z is lower at $39,527, and the state has a pretty high unemployment rate of 11.27%. But with median rent for a one-bedroom apartment at $637 and studios going for $611 a month, the state still offers more opportunities to maximize one’s earning potential.
9. Wyoming
Avg. Gen Z Household Income: $47,267
Median House Listing Price: $455,000
Ranking ninth is the scenic state of Wyoming, which offers a higher average household income for Gen Zers at $47,267. But housing is more expensive, with a median house listing price of $455,000. The bright side? Rent is cheaper, with one-bedroom apartments at $670 and studio apartments costing $553. Despite slightly higher living costs, Wyoming has an unemployment rate of 9.08% and monthly housing costs of $972, making it a feasible option for those looking to spend less.
10. Kentucky
Avg. Gen Z Household Income: $47,435
Median House Listing Price: $309,900
Rounding out the top 10 is Kentucky, with an average household income of $47,435 for Gen Z. The average rent cost is also quite affordable, with a one-bedroom apartment going for $751, while studio apartments rent for $681. Kentucky also boasts relatively low monthly housing costs at only $890. With an unemployment rate of 9.82%, Kentucky remains an affordable and reasonable option for young adults looking to grow their savings accounts while lowering their monthly expenses.