Michigan Ranks In The Bottom 5 Poorest States for Millennials

[313WX]

On average, millennials in Michigan are doing even worse than their counterparts in Mississippi.

http://www.attn.com/stories/4570/mil...ome-in-america

Just the above realization alone is going to be a pretty hard sell if you're begging the young and educated to "forget Chicago."

[Cliffy]

I don't get what that chart means. I mean it doesn't say anything about education levels or ages. It just says median income. So that includes a 19 year working at Taco Bell? I don't understand how you get anything about the young and educated.

[SyGolden48236]

Also, one needs to understand that the cost of living is much lower here than many other areas of the country, so a dollar goes farther here than it does in Chicago or the west coast.

Further, with what types of degrees are these millennials graduating? A degree in anthropology, urban studies, art, music, philosophy or communications, among others, is not going to land a high earning career.

[softailrider]

Also, one needs to understand that the cost of living is much lower here than many other areas of the country, so a dollar goes farther here than it does in Chicago or the west coast.

Further, with what types of degrees are these millennials graduating? A degree in anthropology, urban studies, art, music, philosophy or communications, among others, is not going to land a high earning career.

Cost of living isn't exactly cheap downtown or in Royal Oak or in most of the places these kids want to live. If you want to live around Mack and St. Jean or Schoolcraft and Plymouth you can live pretty I expensively but I don't see too many millennial moving to areas like that.

[Cincinnati_Kid]

Cost of living isn't exactly cheap downtown or in Royal Oak or in most of the places these kids want to live. If you want to live around Mack and St. Jean or Schoolcraft and Plymouth you can live pretty I expensively but I don't see too many millennial moving to areas like that.

But then, they will have another set of issues to deal with, living in those areas.

[wolverine]

Also, one needs to understand that the cost of living is much lower here than many other areas of the country, so a dollar goes farther here than it does in Chicago or the west coast.

Further, with what types of degrees are these millennials graduating? A degree in anthropology, urban studies, art, music, philosophy or communications, among others, is not going to land a high earning career.

Well think of it this way. The higher cost of living results in a better return of services and neighborhood amenities. At the same time, some things are lower. Chicago has no income tax. Many Michigan cities do. Illinois income tax is slightly lower than Michigan's but the sales tax is higher. Chicago property taxes are slightly above average. Rents are average in comparison to Michigan cities unless you live by the lake or downtown. In the end things even out a bit.

Finally...income. My job field and related positions pay double and in some cases even more than that then back in Michigan. With my rent costing $2000 more annually than a comparable condo in Michigan...plus great mass transit access and a vibrant and safe neighborhood full of shopping and restaurants, it makes little sense to go elsewhere unless I had a family and therefore different needs

[313WX]

Well think of it this way. The higher cost of living results in a better return of services and neighborhood amenities. At the same time, some things are lower. Chicago has no income tax. Many Michigan cities do. Illinois income tax is slightly lower than Michigan's but the sales tax is higher. Chicago property taxes are slightly above average. Rents are average in comparison to Michigan cities unless you live by the lake or downtown. In the end things even out a bit.

Finally...income. My job field and related positions pay double and in some cases even more than that then back in Michigan. With my rent costing $2000 more annually than a comparable condo in Michigan...plus great mass transit access and a vibrant and safe neighborhood full of shopping and restaurants, it makes little sense to go elsewhere unless I had a family and therefore different needs

Great points wolverine.

[bust]

Well think of it this way. The higher cost of living results in a better return of services and neighborhood amenities. At the same time, some things are lower. Chicago has no income tax. Many Michigan cities do. Illinois income tax is slightly lower than Michigan's but the sales tax is higher. Chicago property taxes are slightly above average. Rents are average in comparison to Michigan cities unless you live by the lake or downtown. In the end things even out a bit.

Finally...income. My job field and related positions pay double and in some cases even more than that then back in Michigan. With my rent costing $2000 more annually than a comparable condo in Michigan...plus great mass transit access and a vibrant and safe neighborhood full of shopping and restaurants, it makes little sense to go elsewhere unless I had a family and therefore different needs

Yes, there's usually a relationship between higher costs of living and a better return of services and amenities. But not always. An important consideration: those services and amenities specifically important to you.

And don't make your decisions on taxes or you may end up in South Carolina, or Nicaragua. Few but for fogeys would make that choice. Let's be optimistic!

For most, career prospects are key to the decision.

Not sure if we agree or disagree, but I guess the former.

[Cliffy]

When I was 19, I only worked in the summer and made no where near 19k but my goal was to finish college and just to make spending money. That's why this map means nothing.

[mikeg19]

As was said, the report needs to give us the parameters to have any merit. Not much you can decipher from that crap.

[TTime]

Looks like our broke ass Millenials will need to rely on their repurposing skills and lay off the overpriced craft beers and new farm to table restaurants.

[mikeg19]

Looks like our broke ass Millenials will need to rely on their repurposing skills and lay off the overpriced craft beers and new farm to table restaurants.

Just like all the broke ass Baby Boomers who have $10,000 in their retirement accounts because they leveraged their houses to buy a cottage, 2 boats, a Vette & Escalade need to do the same.

[TTime]

Just like all the broke ass Baby Boomers who have $10,000 in their retirement accounts because they leveraged their houses to buy a cottage, 2 boats, a Vette & Escalade need to do the same.

Ha yeah the BBs made some dumb life choices too. Let me know when you find out a way to repurpose a Jet Ski into a friggin park bench.

[mikeg19]

Let me know when you find out a way to repurpose a Jet Ski into a friggin park bench.

I gotta be honest, I think I could do that!

[Don K]

I see the "everything's fine, we have no problems here" brigade is out in force. Sure, houses and apartments are less expensive here than in some other places, but what about food? Clothes? Cars? Utilities? Got any evidence that a higher percentage of kids here than in other places are in college and only working summers to earn spending money? Got any evidence that a higher percentage of college grads here have degrees in "impractical" majors than in other places?

Face facts folks, we've had close to five years of the low-tax, low-service, "business-friendly" experiment, and it's failed. Michigan is on its way to the bottom of the barrel.

[maverick1]

For those of you that don't believe thr article, I have two questions.

1. Why do you think Michigan isn't one of the poorest states for millennial?

2. What do you think makes Michigan so great for Millenials?

[Bham1982]

The cost of living argument doesn't make sense, at least not to me.

We are all being paid in dollars here in the U.S. There are no currency adjustments. Everything costs about the same nationwide, except for housing, and pricier housing means higher returns.

A box of cereal or an oil change or a t-shirt costs the same in California and New York as in Michigan. The only difference is real estate, which, again, has much higher year-over-year returns, so while more expensive, it's a better investment. It's like comparing Apple stock to Yahoo stock or the Swiss Franc to the Colombian Peso and concluding that Yahoo and the Peso are better investments just because they're cheaper.

And in Metro Detroit, good neighborhoods with top school districts, and solid real estate appreciation, aren't cheap. Good luck getting a decent-sized home for anything less than 500k in Birmingham. Good luck finding new[[er) construction in Novi or Rochester Hills for less than 500k.

[mikeg19]

The cost of living argument doesn't make sense, at least not to me.

We are all being paid in dollars here in the U.S. There are no currency adjustments. Everything costs about the same nationwide, except for housing, and pricier housing means higher returns.

A box of cereal or an oil change or a t-shirt costs the same in California and New York as in Michigan. The only difference is real estate, which, again, has much higher year-over-year returns, so while more expensive, it's a better investment. It's like comparing Apple stock to Yahoo stock or the Swiss Franc to the Colombian Peso and concluding that Yahoo and the Peso are better investments just because they're cheaper.

And in Metro Detroit, good neighborhoods with top school districts, and solid real estate appreciation, aren't cheap. Good luck getting a decent-sized home for anything less than 500k in Birmingham. Good luck finding new[[er) construction in Novi or Rochester Hills for less than 500k.

While I agree for the most part with you Bham, I don't know how you can tell me a hamburger in NYC is the same price in Detroit is the same in LA is the same in Souix Falls. I think there are differences in services and goods, but an $8 versus $18 burger in a city isn't the difference between make or break for a Millennial. You hit on it being housing and real estate.

[Bham1982]

While I agree for the most part with you Bham, I don't know how you can tell me a hamburger in NYC is the same price in Detroit is the same in LA is the same in Souix Falls.

I would say, generally speaking, yeah, a hamburger costs the same in all those places.

There are some highly localized tourist-oriented markets, like Times Square, or Beverly Hills, where you might pay a dollar or two more for a burger, because of insane real estate costs and a captive market, but your typical burger in your typical neighborhood in the NYC or LA regions will cost the same as in Metro Detroit.

There might be some slight differences. Produce is probably cheaper in CA. Gas is a little cheaper in MI. Sales taxes vary slightly. But, generally speaking, I think housing is the only major difference in relative costs.

[Honky Tonk]

I would say, generally speaking, yeah, a hamburger costs the same in all those places.

There are some highly localized tourist-oriented markets, like Times Square, or Beverly Hills, where you might pay a dollar or two more for a burger, because of insane real estate costs and a captive market, but your typical burger in your typical neighborhood in the NYC or LA regions will cost the same as in Metro Detroit.

There might be some slight differences. Produce is probably cheaper in CA. Gas is a little cheaper in MI. Sales taxes vary slightly. But, generally speaking, I think housing is the only major difference in relative costs.

Not true. A friend moved from Detroit to Chicago and he constantly complains about the higher cost of living, [[things). Think about it, if you own a hamburger place, and your housing is X amount of dollars, Your burgers are going to have to cost more to absorb your cost of living. [[rent, storefront, waiters, cooks, etc., their housing)

[iheartthed]

I would say, generally speaking, yeah, a hamburger costs the same in all those places.

There are some highly localized tourist-oriented markets, like Times Square, or Beverly Hills, where you might pay a dollar or two more for a burger, because of insane real estate costs and a captive market, but your typical burger in your typical neighborhood in the NYC or LA regions will cost the same as in Metro Detroit.

There might be some slight differences. Produce is probably cheaper in CA. Gas is a little cheaper in MI. Sales taxes vary slightly. But, generally speaking, I think housing is the only major difference in relative costs.

There are material differences in cost of groceries in expensive places like New York than cheaper places like Metro Detroit.

https://www.nerdwallet.com/cost-of-l...york-manhattan

https://www.nerdwallet.com/cost-of-l...y-life/detroit

[ndavies]

There is definitely a big difference in costs between states. According to this site, there is at least %25 difference between what a $100 would buy in Michigan compared to California.

What does $100 buy in your state.

http://consumerist.com/2014/08/19/ho...hat-shows-you/

[Bham1982]

There is definitely a big difference in costs between states. According to this site, there is at least %25 difference between what a $100 would buy in Michigan compared to California.

What, outside of housing, is significantly more expensive in CA? Nothing major.

Those COL websites are silly because they only take housing costs into account, and not housing returns. It's like saying a person feeding their 401k is poorer than someone who doesn't.

[ndavies]

What, outside of housing, is significantly more expensive in CA? Nothing major.

Those COL websites are silly because they only take housing costs into account, and not housing returns. It's like saying a person feeding their 401k is poorer than someone who doesn't.

The cost of living varies greatly across the country. Yes, housing costs greatly affect this. Housing costs are the biggest part of most people's monthly expenses.

Here's a few more websites that back the data.
How about one from CNN Money:
http://money.cnn.com/calculator/pf/cost-of-living/

Try Detroit Vs San Francisco or new York.

Governing.com
http://www.governing.com/gov-data/me...2014-data.html

And here's a US government list of websites recommended for comparing states costs
http://www.state.gov/m/fsi/tc/79700.htm

If there wasn't a difference there wouldn't be all these sites comparing the differences.

[DetroiterOnTheWestCoast]

What, outside of housing, is significantly more expensive in CA? Nothing major.

Those COL websites are silly because they only take housing costs into account, and not housing returns. It's like saying a person feeding their 401k is poorer than someone who doesn't.

Try gas prices, for one thing. And "housing returns" don't really help renters. And yes, even the burgers are more costly here