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.

[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.

[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.

[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.

[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.

[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.

[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]

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.

[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.

[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)

[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

[1953]

Bham, let me make sure I understand your argument. It sounds like:

"I don't believe that things cost different amounts in different places, despite widespread evidence to the contrary."

Prices vary by market. So do salaries. Its a thing.

1953

[softailrider]

My nephew got married 7 weeks ago. He's very early 30's in sales, she's a 2nd year attorney. They both make a very good income, close to 100k a year each or maybe a little more. They live in a flat on some street in Royal Oak not real close to downtown but they can walk it. After all is said and done their living expenses are north of $2000.00 a month. Royal Oak isn't exactly cheap these days, neither is downtown or midtown Detroit.

[Hypestyles]

Free community college would be a good start. Young people and able-bodied adults need better career options. The traditional high-school-diplomas-only factory era is long over.

[Cliffy]

Millennial wouldn't be so poor if they didn't spend so much money like crazy. You see so many young people bragging about visiting 25 countries, traveling all over Europe etc.. Seriously, when did someone making 35k a year become world travelers. There are plenty of jobs out there but this whole instagram world of going to events every week, luxury vacations etc... has a price and many will be in a world of hurt when they hit 50. I can say this because I'm a millennial and I see what goes on.

[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

[iheartthed]

I fall into the camp that this map doesn't really mean anything. I don't think this is a measure for where robust economies or high paying jobs are located. It also probably doesn't say much about the future of what the future will look like in terms of better paying jobs.

Connecticut, the state with the highest overall median income in the country, is barely above Michigan and is the same as Alabama, which is one of the lowest income states in the country. There also isn't really that much variance among the states, since the vast majority of states [[rich and poor ones) fall within a band of $2000-$3000. Also, Alaska has by far the highest median income for millennials, which could mean that Alaska pays young people more money to do the same jobs they do everywhere else, or it could mean that that state's population of young people skews older and Alaskan millennials tends to be further into their higher earning years.