Choosing where to live is one of the most important financial decisions you will ever make. Housing costs, taxes, job opportunities, and the overall cost of living can vary significantly from one city to another. The best place to live is not determined by your age alone, but by your current stage of life and financial goals. Whether you are a Gen Z professional starting your career, a millennial balancing work and family, a Gen X homeowner seeking long-term stability, or a Baby Boomer preparing for retirement, your priorities and lifestyle needs will naturally evolve.
At Reliance Financial, we understand that choosing the right location is an important part of building a strong financial future. This guide explores some of the best places to live for each generation and the factors to consider when deciding where to call home.
Gen Z (Born 1997–2012): Affordability and Career Launchpads
For Gen Z, there has been a large rent increase, and student loans to help pay their housing expenses over the years. Therefore, when choosing a place to live, affordability will be the most important factor. Consequently, many of the people in this generation look for cities that have a low cost of living in addition to a suitable (starter-position) job market and a social scene they can enjoy without having to earn 6-figures per year.
Examples of cities that would be a good fit for Gen Z include:
- Austin, Texas: An up-and-coming tech city with a lower cost of living than many coastal areas.
- Raleigh, North Carolina: Great job opportunities in both tech & health care and affordable rent.
- Columbus, Ohio: Low-cost living with a younger population and a very active lifestyle.
- Salt Lake City, Utah: Many startups are moving to this area, and outdoor activities are very accessible for a reasonable cost compared to major coastal areas.
One advantage Gen Z can experience is either sharing rental expenses or staying with their parents until they save enough for a down payment. In addition, financially speaking, the cities that are the best fit for Gen Z are the cities where they can have enough income to make both savings and debt payments at the same time.
Millennials (Born 1981–1996): Balancing Career Growth and Family Needs
Millennials, or the age group of 30 to 39 years old, are currently in the ‘sweet spot’ of their lives, earning money and creating a family; therefore, they base their location choices on school districts, home prices, and commuting to the job centers while maintaining their quality of life. Additionally, Millennials are typically working remotely or are acutely aware of hybrid options, allowing them to consider non-traditional and typically pricey metropolitan areas.
Listed below are four great cities for Millennials looking to relocate:
- Denver, CO – Numerous job openings exist, outdoor activities, and family-oriented suburbs
- Charlotte, NC – Growing financial services industry, affordable housing
- Boise, ID – Capital of Idaho, Affordable homes/land; slower pace of life; growing families
- Nashville, TN – No state income tax, rapidly growing job market
Homeowners and those planning to purchase a home in the near future are increasingly prioritizing cities with affordable property taxes and strong home appreciation over nightlife and convenience. This generation should also consider commute times, proximity to work, and remote work opportunities when choosing where to live. Living in a more affordable city farther from a central business district can reduce monthly housing costs, improve cash flow, and create greater opportunities to save for the future.
Gen X (Born 1965–1980): Stability, Equity, and Peak Earning Years
Generation X is often in the strongest financial position of their lives, but they may also face competing financial priorities, such as saving for their children’s college education, paying off a mortgage, and preparing for retirement. As a result, this generation tends to prioritize financial stability and long-term value over trendy features and amenities. When choosing where to live, factors such as affordability, quality of life, healthcare access, and investment potential often play a more important role in their decision-making process.
Some places that meet the needs of Gen X include:
- Minneapolis, Minnesota – An established job market and excellent public education system.
- Pittsburgh, Pennsylvania – A low housing cost due to the availability of housing options, combined with a stable economy that includes many different industries.
- Kansas City, Missouri – Low cost of living and significant concentration of healthcare and education-based businesses.
- Richmond, Virginia – An environment that promotes a balanced tax structure and home values that consistently increase over time.
Homeowners in Generation X have built up a lot of equity in their homes, so when considering relocating to another city, it is important to understand how the equity in the current home is impacted by the relocation decision, if refinancing is possible, and how the property tax structure in the new city will affect long-term wealth accumulation. Many Generation X homeowners are taking advantage of working with a financial planner to ensure they are modeling the impact of a move on their retirement timelines.
Baby Boomers (Born 1946–1964): Retirement, Healthcare, and Tax Efficiency
Baby Boomers’ financial priorities are changing as they approach their retirement years. The main focus for many Baby Boomers is maximizing retirement income through efficient use of assets and ensuring that they will have healthcare resources after retirement. Additionally, many Boomers are considering downsizing to free up significant amounts of home equity that can be used to help bolster their retirement savings.
Several attractive and affordable areas of the United States for succession planning and relocation for Boomers include:
- Tampa, Florida – No state income tax and a robust healthcare system.
- Asheville, North Carolina – Low overall cost of living with outstanding access to medical services.
- Scottsdale, Arizona – Very good weather and a growing number of senior-related amenities.
- Chattanooga, Tennessee – Affordable cost of living with no state income tax.
Boomers should review state tax structure, local property taxes for seniors, and the proximity of quality healthcare services. This is very important before relocating. Moving for lifestyle reasons can create unanticipated tax obligations or limit access to specialized medical services due to taxation differences, which is why it is important to consult with a qualified Financial Adviser before making any decision that could affect your financial future.
How Reliance Financial Can Help ?
Regardless of your generation, where you choose to live plays an important role in shaping your financial future. Housing costs, taxes, employment opportunities, and access to healthcare can all influence your income, savings, and long-term financial goals. At Reliance Financial, we help clients at every stage of life carefully evaluate these factors. From mortgage financing and tax considerations to retirement and investment planning, we provide guidance to help ensure that your choice of location aligns with your overall financial plan.
Conclusion
Every generation has different priorities when choosing the best place to live. The ideal city often depends on an individual’s stage of life, financial goals, and lifestyle needs. For example, Generation Z may prioritize affordability and career opportunities, millennials often seek a balance between family needs and job accessibility, Generation X focuses on financial stability and building long-term wealth, and Baby Boomers value tax efficiency and access to quality healthcare. While generational trends can provide useful guidance, it is more important to focus on the financial priorities that matter most to you at your current stage of life and choose a location that supports those goals.
If you are looking to relocate for a new job, downsize as you prepare for retirement, or establish roots for the first time, making a thoughtful decision today could pay off for decades to come. At Reliance Financial, we can help you analyze the financial trade-offs associated with your options and develop a location strategy that aligns with your broader financial goals.
Frequently Asked Questions
Does where I live really impact my financial health in the long term?
It does. Your housing costs, state tax rates, and job opportunities vary greatly by location, which impacts how much you can save and how much you will make from your work to help you build wealth over time.
Should Gen Z rent rather than buy in a pricey city?
Usually, renting affordably while saving to buy is the better option for them early in their lives. Once Gen Z’s income has stabilized, buying may be a better choice if they can have enough of a down payment to help ensure their emergency funds and retirement funds are not depleted to make the down payment.
Are remote opportunities a priority for Millennials when choosing a city?
They should be. The flexibility of working remotely or in a hybrid model gives Millennials the ability to live in lower-cost cities and still earn a higher salary than if they lived in a higher-cost city. This will improve month-to-month cash flow and increase the amount they can save for the long term.
How does moving impact home equity for Generation X (Gen X)?
If you are considering relocating, be aware that moving has several consequences; these can include capital gains tax, refinancing expenses, and a decline in equity appreciation. Gen X should consider their relocation vs their final retirement date prior to making a decision on whether or not to move.
What is the significance of taxes for the Baby Boomer generation when selecting a retirement destination?
State income tax and property tax have a direct impact on the longevity of your retirement income. The less heavy the tax structure on your state of residence, the longer your retirement savings will last during your retirement life.
How can Reliance Financial assist you with locating a residence?
Reliance Financial can help you determine where to locate by assessing your financial needs, the tax structure of the states you are considering moving to, your goals and life stage, and why that particular state will strengthen your overall financial plan, not just provide you with a comfortable lifestyle.
