New Mexico is moving up in the ranks of states for millennials to live, according to WalletHub—all the way from last place to second to last place! The penultimate spot does not tell the whole story, though.
Albuquerque is a pretty great place for millennials, in fact. The low cost of living, proximity to gorgeous outdoor scenery and recreation, and rich culture contribute to a high quality of life. The burgeoning film and tech industries are creating jobs and contributing to the “cool factor,” and supportive economic policies make it an opportune place to run a business.
According to Albuquerque Economic Development, “The region has a favorable ratio of residents in the key working age group of 20-34 years. Current estimates show that 19 percent of the population is in this key age bracket, compared to the national average of 18 percent. Albuquerque’s 20-34-year-old category is also projected to expand by a greater rate than the national average.”
This matters, even if you eschew avocado toast and Instagram, because millennials are a crucial market. They are projected to become the largest generation this year and currently represent 21% of all discretionary spending in the United States.
CNBC summarizes a recent report by Coldwell Banker Global Luxury and WealthEngine that studied some of the economic and life choices of “millennial millionaires”—of whom there are apparently about 618,000.
The population of wealthy young people is growing, the report finds. And they’re getting richer: “By 2030, millennials will hold five times as much wealth as they have today, and are expected to inherit over $68 trillion from their predecessors in the Great Transfer of Wealth.” The “Great Wealth Transfer” refers to the trillions of dollars that will be passed down to millennials from their baby boomer parents, who are considered the wealthiest generation in history.
The same study also found that millennials are choosing to live in more affordable markets and second-tier cities where it’s easier to get ahead financially. As we’ve reported, Albuquerque ranks in the top 10 affordable cities and top 5 for building wealth.
So factor millennial spending power into Albuquerque’s phenomenal economic growth potential. If you’re a millennial thinking about where to move, take that WalletHub report with a grain of salt. And read about opportunities to own an ABQ business here.