The Cities Where Millennials Earn the Biggest Income Premium (2025)

Across U.S. cities, Millennials see sharply different earnings outcomes—some enjoy large income premiums, while others earn no more than the typical local household.

Millennials have entered their peak earning years, and across major U.S. cities they earn, on average, 8.8% more than the typical local household. But that premium varies sharply by location. Local labor demand, industry composition, and resident skill levels all shape outcomes, creating cities where Millennials out-earn other households by more than 40%—and others where they struggle to even match the median income.

For Millennials, these income gaps matter more than ever, especially as many are building careers, buying homes, and raising young families.

• Millennials in Jersey City, NJ earn 42% more than the city’s overall median household. Millennial households in Jersey City earn a median of $143,500, far above the $100,751 median across all ages. Many benefit from high-paying jobs across the Hudson in New York City, while avoiding the higher taxes faced by their counterparts in the Big Apple.
• Millennials also see strong earnings in many cities across California and Massachusetts. Six of the top ten cities for Millennial earnings are located in California and Massachusetts. Berkeley, CA ranks second nationwide with a 41.7% Millennial earnings premium and a median income of $146,987. Massachusetts follows close behind, placing third with a 38.2% premium and $140,661 in median Millennial earnings. Other top-ten cities include San Francisco, CA (5th); Brockton, MA (8th); New Bedford, MA (9th); and Jurupa Valley, CA (10th).
• Millennial median incomes exceed $200,000 in three U.S. cities. Sunnyvale, CA leads the nation in median income for both all households and Millennial households. Millennials there earn $234,577—well above the citywide median of $181,022, a 29.6% premium. High Millennial earnings are also seen in nearby cities: Santa Clara Millennials earn $216,088 annually (a 19.6% premium), while those in San Mateo earn $201,857 (a 24.5% premium).
• In one out of ten cities, Millennials earn less than the overall median household income. Despite being in their prime earning years, Millennials post a negative income premium in 37 cities. Notable examples include Lafayette, LA (-14.8%); Jackson, MS (-13.5%); Santa Maria, CA (-12.0%); Sandy Springs, GA (-9.6%); Pearland, TX (-9.5%); West Covina, CA (-9.4%); Carmel, IN (-8.5%); Pasadena, TX (-7.5%); St. George, UT (-7.1%); and Daly City, CA (-7.1%).