17 Best Cities for Gen Z to Live on a Budget

In this article, we’ll take a detailed look at the 17 Best Cities for Gen Z to Live on a Budget. For a quick overview of the top five, head over to the 5 Best Cities for Gen Z to Live on a Budget.

In the hustle and bustle of the 21st century, there’s a new generation coming of age, known as Generation Z. Born between 1997 and 2012, this energetic cohort is starting to take its first significant steps into the adult world. A study by Bloomberg estimates that Gen Z will comprise 32% of the global population in 2023, overtaking millennials.

Finding a place to call home, however, is an entirely different ball game. Despite their tech-savvy skills and forward-thinking perspectives, Gen Zers are faced with the daunting task of finding affordable living spaces in cities that can also cater to their unique lifestyle needs.

When we talk about living in the city, we’re not just talking about four walls and a roof. We’re considering vibrant neighborhoods, a dynamic job market, cultural diversity, efficient transportation, and a reasonable cost of living. Unfortunately, these attributes often come with a high price tag. According to a recent survey by PYMENTS, 66% of Gen Z respondents reported living paycheck to paycheck. Moreover, 68% of Gen Z-ers are worried about affording housing, and for good reason.

Over the past decade, the cost of housing in most urban centers has skyrocketed, far outpacing the growth in wages. As of 2022, the average monthly rent for a one-bedroom apartment in a major US city ranges from around $1,200 to $3,000. Combine that with the average student loan debt, which according to Experian, stands at $20,468 per Gen Z individual as of 2022, and you have a real uphill financial struggle for many young adults.

Another key concern of Generation Z, more so than previous generations, is sustainability and environmental impact. A study by the Pew Research Center in 2021 found that over 69% of Gen Z is somewhat to extremely concerned about the impact of climate change on their future. Therefore, cities with sustainable development plans and green initiatives, like Austin, TX, which aims to reach net-zero greenhouse gas emissions by 2050, may appeal to this eco-conscious generation.

So, how do Gen Z go about finding that delicate balance of affordable living, job opportunities, and vibrant culture? Is it possible to find a city that ticks all these boxes without leaving Gen Z burdened with sky-high rents and a dwindling bank balance?

The answer is yes. There are still cities out there that offer an affordable lifestyle without compromising on quality or opportunities. These cities combine affordability, job growth, diversity, and cultural activities into a winning recipe that suits the Gen Z lifestyle. By zeroing in on cities with lower cost-of-living indices, better employment rates, and a buzzing cultural scene, this generation can make their mark without breaking the bank.

For instance, Gen Z city indexes show that in cities like San Antonio, TX, and Memphis, TN, one can find affordable rentals for under $900 a month. Similarly, job markets in these cities are also on the rise. San Antonio, for example, saw a job growth rate of 3.5% in 2022.

To understand the potential of these underrated gems, we need to take a closer look at the intersection of affordable living, job market dynamics, cultural opportunities, and Gen Z’s unique needs and preferences. In this article, we will dive deep into a curated list of the top cities for Gen Z to live on a budget. We’ve examined the facts, compared the numbers, and analyzed the trends, all to help Gen Z-ers find a city where they can truly thrive.

Methodology

The methodology used for the selection and ranking of the listed cities relied on a multi-index approach. This approach considered three significant indices: the Numbeo Cost of Living Index, the Value Penguin Public Transit Index, and the Grocery Index. The cities were chosen based on their presence in at least two of these indices, thus ensuring a balanced selection based on diverse economic factors.

The first step in the process was to normalize the rankings within each of the three indices for the cities under consideration. Normalization was performed by converting raw scores in each index into a scale from 1 to 17, with 1 representing the city with the most affordable score in a particular index and 17 representing the least affordable. The normalization process equalizes the scales, allowing for meaningful comparison across the indices.

Following normalization, an average score was calculated for each city. This was done by adding the normalized scores from each index where the city was present and dividing the sum by the number of indices in which the city appeared.

Finally, the cities were ranked based on their average scores, again with 1 denoting the most affordable city and 16 indicating the least affordable on our index. This final ranking provides a comprehensive view of the affordability of each city based on multiple economic factors.

Below is our list of the best cities for Gen Z to live on a budget:

17 Best Cities for Gen Z to Live on a Budget

17. Las Vegas, NV

Insider Monkey Rank: 16

With an average median rent of $1,045 for a studio apartment, Las Vegas made it to the list of the most affordable city for millennials in 2019. Beyond its entertainment reputation, Las Vegas has a growing job market in sectors such as healthcare, tech, and finance. The cost of living is on par with the national average, and Nevada’s lack of state income tax could be a financial boon for Gen Z.

16. Columbus, OH

Insider Monkey Rank: 15

Known as one of the friendliest cities for Gen Z, Columbus is home to several Fortune 500 companies, including Bath & Body Works, Inc. (NYSE:BBWI), Big Lots, Inc. (NYSE:BIG), and renowned Ohio State University. The city offers a growing tech scene alongside sectors like education, healthcare, and government. It’s one of the more affordable cities in the Midwest, with an average median rent of $1,211 for a studio.

15. Indianapolis, IN

Insider Monkey Rank: 14

Known as the “Crossroads of America,” Indianapolis boasts a diverse economy with growing sectors like tech, healthcare, and manufacturing, with the cost of living lower than the national average. With its rich racing history, thriving sports culture, and impressive cultural institutions, Indianapolis offers more than meets the eye, making it an attractive choice for Gen Z.

14. Houston, TX

Insider Monkey Rank: 13

Houston, Texas, also known as the Space City, is a bustling metropolis with a strong economy, rich culture, and a dynamic urban lifestyle that makes it one of the best places for Gen Z to work. Houston is one of the most populous cities in the US, known for its strong economy, particularly in the energy, healthcare, and aerospace sectors. Despite its size, the cost of living remains relatively affordable—you can expect to pay a median rent of $1,289 on average for a one-bed apartment.

13. Milwaukee, WI

Insider Monkey Rank: 12

Milwaukee combines affordability with a robust job market, particularly in healthcare, manufacturing, and education. Known for its brewing history, the city also boasts a vibrant arts and culture scene. A pivotal part of Milwaukee’s economy is its manufacturing sector, with the city often being referred to as the “machine shop to the world.” Companies like Harley-Davidson have their roots here, offering numerous employment opportunities.

12. Jacksonville, FL

Insider Monkey Rank: 11

Jackson is one of the best southern cities for Gen Z to live on a budget. Serving as a regional business center with multiple museums and cultural offerings, Jacksonville, Florida, has a unique charm that makes it an attractive destination for Gen Z. With a cost of living below the national average and ample sunshine, Jacksonville offers promising opportunities in sectors such as healthcare, finance, and logistics, while being home to diverse recreational activities.

11. Oklahoma City, OK

Insider Monkey Rank: 10

Known for its lower-than-average cost of living, Oklahoma City offers growing industries like aerospace and biotechnology, making it an attractive choice for career-starting Gen Z individuals. The oil and gas industry, historically a powerhouse for OKC’s economy, has made way for a more diversified economic landscape. The city is home to the University of Oklahoma Health Sciences Center and Oklahoma City University, known for their academic excellence and employment opportunities.

10. Kansas City, MO

Insider Monkey Rank: 9

With its thriving arts scene, growing tech sector, and cost of living below the national average, Kansas City is an appealing option. Its strong job market in sectors like healthcare, finance, and IT is a plus for young professionals. Whether you’re looking to rent or buy, housing in Kansas City tends to be more affordable compared to other major cities, making it easier for young people and those just starting their careers. The median rental price for a studio apartment in Kansas City usually sits around $895

9. Richmond, VA

Insider Monkey Rank: 8

Offering a blend of history, culture, and modern industry, Richmond is a promising city for Gen Z. Richmond’s economy is diverse and thriving, with prominent sectors including finance, government, education, and healthcare. The city hosts six Fortune 500 companies, such as Dominion Energy and CarMax, offering a range of job opportunities. Education-wise, Richmond is home to prestigious institutions like Virginia Commonwealth University and the University of Richmond, providing various opportunities for study and employment.

8. Fresno, CA

Insider Monkey Rank: 7

Fresno is one of the best budget cities for Gen Z in California. It offers a unique blend of urban living with a touch of rural charm. This city, the fifth largest in California, strikes a balance between affordability and opportunities, making it an enticing prospect for Gen Z individuals. Known for its agricultural industry, Fresno provides a lower Cost of Living (CoL) alternative within California, with its CoL being 47% lower than the state average. The city has a growing healthcare sector and is a short drive from natural attractions like Yosemite National Park.

7. Spokane, WA

Insider Monkey Rank: 6

Spokane offers a lower cost of living compared to other cities in Washington, with an average median rent of around $942 for a studio apartment. Known for its healthcare and education sectors, it provides numerous job opportunities while also being a gateway to outdoor recreation. It is a city that marries natural beauty with economic potential. Known for its picturesque landscapes with more than 87 parks and a host of outdoor activities, Spokane offers an engaging lifestyle that’s particularly appealing to the younger generations.

6. Detroit, MI

Insider Monkey Rank: 5

Detroit is experiencing a resurgence with new businesses and industries taking root, providing a range of job opportunities. Its affordability, combined with a thriving arts scene, makes it a viable choice for young adults. The city has been the bedrock of America’s automotive industry with the presence of heavyweights like General Motors and Ford. E-commerce giant Amazon (NASDAQ:AMZN)has also stamped its presence in Detroit, with a massive fulfillment center that opened in 2020.

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Disclosure. None. 17 Best Cities for Gen Z to Live on a Budget is originally published on Insider Monkey.