When you’re young, you want to seek out the best opportunities. For many professionals, that means relocating to a new city for better career advancement. However, you need to carefully examine the employment and financial picture in a given metro area before you know if it is right for you.
A number of cities in the United States such as Detroit, MI and Curtis, NE offer incentives for people to move there. These cities typically must combat declining populations, and the number of residents often dwindled because of very valid reasons (high crime, few jobs). This article gives you important statistics on 8 metro areas in different parts of the country that are more desirable options.
We detail four important factors in a moving decision.
- Rent amounts for apartments inside and outside the city center to provide you an estimate of housing costs.
- Metro area unemployment rates give insight in how easy it is to find a new job (The national unemployment rate was 5.8% in November of 2014 and 5.6% in December of 2014. The most up-to-date information is listed below).
- State income taxes rates so you know what to expect will come out of your paycheck.
- Where the jobs are (and aren’t). Surprising facts about the fastest growing sectors in the cities listed below.
- Rent 1 Bedroom: city center $1,059; outside city center $800
- Metro area unemployment rate: 6.5% (11/2014)
- State income taxes: range from 1%-6%
With its world-famous airport, it is probably not surprising that the trade / transportation / utilities sector experienced the greatest growth in 2014. Atlanta’s higher than the national average unemployment rate means that many sectors experienced limited growth in 2014.
- Rent 1 Bedroom: city center $1,418.75; outside city center $838.67
- Metro area unemployment rate: 3.9% (11/14)
- State income taxes: None
Austin’s 3.2% growth in employment stands well above the national average. Construction, trade / transportation / utilities, and information sectors achieved strong growth.
- Rent 1 Bedroom: city center $1,300; outside city center $858
- Metro area unemployment rate: 3.9% (11/14)
- State income taxes: 4.63% flat rate with personal exemptions
People may think of the Midwest when it comes to manufacturing, but Denver posted a red hot 6.2% jump in employment in this sector. The construction, education & health services, and leisure & hospitality sectors all made strong gains. Be careful if you are in an information field, employment in that sector actually declined in 2014.
- Rent 1 Bedroom: city center $2,150; outside city center $1,413.75
- Metro area unemployment rate: 7.3% (12/14)
- District of Columbia income tax: range 4%-8.95%
The most famous industry, government, actually posted weak job gains. Trade / transportation / utilities and the construction sectors provided strong job growth.
- Rent 1 Bedroom: city center $1,680.45; outside city center $1,006.50
- Metro area unemployment rate: 5.4% (12/14)
- State income tax: flat rate 3.75% effective 01/15 with personal exemptions
Chicago is great if you have a job. Low-skilled and high-skilled positions pay above the national average. However, don’t move there unless you have a great job offer in hand. Chicago experienced weak job growth across sectors.
- Rent 1 Bedroom: city center $1,634.98; outside city center $1,230.77
- Metro area unemployment rate: 5.1% (11/14)
- State income tax: None
Seattle might be famous for Microsoft, but the construction sector grew at a blistering 11.6%. The fields of leisure & hospitality and business & professional services had healthy growth too.
San Francisco, CA
- Rent 1 Bedroom: $2,843.64 (city center); $2,018.36 (outside city center)
- Metro area unemployment rate: 5.0% (11/14)
- State income taxes: progressive tax rates from 1% (lowest bracket) to 12.3% (highest bracket)
Like Austin, San Francisco area employment grew by 3.2% in 2014. Growth was broad-based with construction (7.9%) and the information (tech) sector (4.7%) posting the largest job growth. Business & professional services and leisure & hospitality sectors were also strong gainers.
New York City, NY
- Rent 1 Bedroom: $2,771.44 (city center); $1,739.71 (outside city center)
- Metro area unemployment rate: 5.8% (11/14)
- State income taxes: 4.0% (lowest bracket); 8.82% (highest bracket)
It might be famous for Wall Street, but the financial activities employment grew a meager .9%. The information, construction, and manufacturing sectors actually saw employment declines. The job growth was in business & professional services, education & health services, and the leisure & hospitality sectors in the nation’s biggest metro area.
Know If You’re Getting a Good Deal
After reviewing the statistics, you might wonder “How do I know if I’m getting more for my money with a move?” To give you more information on cost of living differences in the U.S., here is a simple guide. According to the cost of living calculator at Numbeo.com, to enjoy the same standard of living as someone in Los Angeles, CA making $4,600/month, you must make…
$3,799.70/month in Atlanta, GA
$4,297.16/month in Austin, TX
$4,279.76/month in Denver, CO
$5,711.64/month in Washington, D.C.
$4,661.50/month in Chicago, IL
$5,159.74/month in Seattle, WA
$6,428.04/month in San Francisco, CA
$6,715.17/month in New York, New York
A Life Choice for You
With their strong employment pictures and relatively low cost of living, Austin and Denver stand out as great options. San Francisco’s growth in many fields needs to be balanced with its high cost of living. There are, of course, other factors to consider for relocation.
The physical climate varies dramatically across the country, and if activities like speed skating and building snowmen are for you, then Chicago is obviously preferable to Atlanta. Each city also has its own culture, and sometimes a person just feels more at home in one city than another. Keep in mind, there is a real cost for that feeling in New York City and Washington, D.C.
At the end of the day, this important life choice is up to you. Always remember, while money is not the only thing, it isn’t a trivial consideration either.