Millennials Are Outearning Previous Generations in Key U.S. Cities

Despite facing a challenging start to adulthood—including economic downturns and difficulty securing high-paying early-career roles—millennials are now seeing impressive financial success.

Currently aged 29 to 44, this generation ranks among the highest-earning age groups in the U.S., according to Bureau of Labor Statistics data. This aligns with ADP research, which notes that earnings generally peak in the mid- to late-forties.

The “Millennial Earnings Premium”

In many large U.S. cities, households led by millennials earn roughly 9% more than the local median household income, based on a SmartAsset analysis of Census Bureau estimates.

SmartAsset examined households where the main householder—defined as the homeowner or primary leaseholder—is aged 25 to 44, comparing their median incomes to all households across more than 350 U.S. cities.

This difference, often referred to as the “millennial earnings premium,” exceeds $40,000 in both Jersey City, New Jersey, and Berkeley, California. For example, in Jersey City, millennial-led households earn a median income 42.43% higher than the city’s overall median.

Top 10 U.S. Cities With the Largest Millennial Earnings Premium

1. Jersey City, New Jersey

   • Median millennial household income: $143,500

   • Median household income, all ages: $100,751

   • Millennial earnings premium: 42.43%

2. Berkeley, California

   • Median millennial household income: $146,987

   • Median household income, all ages: $103,727

   • Millennial earnings premium: 41.71%

3. Quincy, Massachusetts

   • Median millennial household income: $140,661

   • Median household income, all ages: $101,775

   • Millennial earnings premium: 38.21%

4. Lakeland, Florida

   • Median millennial household income: $86,739

   • Median household income, all ages: $63,859

   • Millennial earnings premium: 35.83%

5. San Francisco, California

   • Median millennial household income: $188,353

   • Median household income, all ages: $139,801

   • Millennial earnings premium: 34.73%

6. Hartford, Connecticut

   • Median millennial household income: $66,752

   • Median household income, all ages: $50,418

   • Millennial earnings premium: 32.40%

7. Edinburg, Texas

   • Median millennial household income: $79,139

   • Median household income, all ages: $59,851

   • Millennial earnings premium: 32.23%

8. Brockton, Massachusetts

   • Median millennial household income: $98,579

   • Median household income, all ages: $75,210

   • Millennial earnings premium: 31.07%

9. New Bedford, Massachusetts

   • Median millennial household income: $74,730

   • Median household income, all ages: $57,240

   • Millennial earnings premium: 30.56%

10. Jurupa Valley, California

• Median millennial household income: $123,627

• Median household income, all ages: $94,942

• Millennial earnings premium: 30.21%

Why Millennials Earn More in Certain Cities

High-earning millennials are often concentrated in cities that already feature above-average incomes. The national median household income is $83,730, but wages in cities like Jersey City, Berkeley, and Quincy are higher due to proximity to major economic hubs such as New York, San Francisco, and Boston, explains Jaclyn DeJohn, director of economic analysis at SmartAsset.

“Many millennials in Jersey City take advantage of the commute into New York City while benefiting from lower housing costs and taxes,” DeJohn notes.

Additionally, millennials may receive an income boost due to the types of roles they occupy—commonly in tech, finance, and other high-demand sectors. Remote work also plays a role, enabling workers to earn competitive salaries regardless of location.

“Millennials also may qualify for more remote jobs, which may in turn offer some level of income arbitrage,” says DeJohn. “Ultimately, the dynamics in each individual city will be unique.”

Author: Din Kumar