Generation Z is getting rich in these 10 states. Did Arizona make the cut?
A recent study aimed to determine which U.S. states offer the best opportunities for Generation Z to get rich — and Arizona didn't make the cut.
With many Gen Zers now growing into their late teens to mid-twenties, this generation is starting to enter the workforce or navigate the job market fresh out of college while trying to establish financial independence and start building wealth amid rising living costs.
To pinpoint which U.S. states offer the most favorable conditions for young adults wanting to grow their wealth, experts at the banking comparison website Cre ditDonkey looked into financial and economic factors using U.S. Census Bureau data.
The factors evaluated included housing prices, household income and employment rates for people under 25 over the last year, ultimately ranking each state with a score out of 100.
Here's a roundup of the best and worst states for Gen Zers seeking to increase their wealth, as well as where Arizona fell in the mix and why it struggled to rank among the best.
Where in the U.S. are Gen Zers more likely to become rich?
These are the best states for Gen Zers seeking to build their wealth, according to CreditDonkey .
South Dakota
North Dakota
West Virginia
It's not Scottsdale: This small town is the richest city in Arizona.
Where in the U.S. are Gen Zers less likely to become rich?
On the flip side, these are the states where Gen Zers seeking to build their wealth face the most challenges, according to CreditDonkey .
New York
New Jersey
Is Arizona a good place for Gen Zers to become wealthy?
Arizona ranked 34th among U.S. states where Gen Zers are more likely to become rich.
The state obtained an overall index score of about 51 out of 100, which is about 28 points behind the top-ranked South Dakota.
Anna Ge, director of research at CreditDonkey, said these results highlight the contrasting environments young people face as they strive to achieve financial success.
"In states like South Dakota and North Dakota, favorable conditions such as lower housing costs and better employment rates provide a strong foundation for young adults aiming to increase their wealth," she said.
She added that in states like Arizona, the same factors pose significant challenges due to higher living costs and unemployment. Even though young Arizonans were shown to have a solid median household income of about $59,000, the state's median home listing price and median rent costs were among the highest, according to CreditDonkey's analysis.
The median house listing price in Arizona sits at about $511,500, and the median monthly rent for a one-bedroom apartment is above $1,200, according to U.S. Census Bureau data. The study also showed that monthly housing costs for the median Arizona household add up to nearly $1,300 on top of rent. The unemployment rate for Arizonans under 25 is nearly 8%, according to the analysis.
"Despite these challenges, it's clear how the younger generations are driven by determination, working their way through diverse opportunities and situations, aiming for financial stability and growth," Ge said.
