Moving Millennials Avoid Phoenix, Despite Population Boom

PHOENIX, AZ — The Phoenix metro area is topping many lists when it comes to growth but is not so great when it comes to attracting Millennials, new data from the National Association of Realtors shows. Out of 100 major cities throughout the U.S., the Phoenix-Mesa-Scottsdale area ranks 48th. The study looked at employment numbers, population counts, income levels and the ability to buy a house.

The top cities included Denver, Colorado, Salt Lake City, Utah and Madison, Wisconsin.

So what's deterring this large segment of the U.S.?

Millennials makeup about 25% of the Phoenix-area's population, according to the study, with a median income level of $57,700. For those in that age group who are just moving in, their median paycheck drops to about $46,300. Only about 8% of these newcomers could afford to buy a house here. For Millennials who've been living here for awhile, 18% of them can.

Unemployment among this age group in Phoenix trends higher than the national average, too, with 4.3% without work. While these economic conditions aren't perfect, some leaders are pointing to Arizona's state of education as a reason the younger generation isn't moving here.

In an interview with KJZZ, the executive director for Achieve60AZ, says the issue is two-fold. While the state retains about 80% of its universities graduates for the first couple of years, many leave for better options.

"We have somewhat of a flat opportunity here," Rachel Yanof told KJZZ.

Beyond a lack of professional development, for Millennials starting families, options for the kids become more important. Some point to the lack of public spending on education as a drawback.

"There are amazing things happening in K-12 education in Arizona, but they're happening in pockets and they're not as systemic as we'd like and that has an impact," she said.