New study reveals the best states for Gen Z to become rich

DALLAS (KDAF) — A new study reveals that Texas is the one of the worst states for Gen Z to accumulate wealth. 

The study, conducted by online courses aggregator ClassCentral, analyzed the latest US Census Bureau and Realtor.com data (2023) for six key factors: household income, house prices, rents, housing costs, and unemployment rates for under-25s. Each factor was weighted to reflect its importance, with higher scores highlighting the best states for Gen Z to build wealth. 

Texas ranks 44th with an index score of 45.50 out of 100. Young adults in the state have a median household income of $43,483, which falls below the national leaders, while housing costs remain relatively high. The median home listing price stands at $378,000, with median monthly housing expenses averaging $1,395. Rentals are slightly more affordable, with one-bedroom properties averaging $1,261 and studios at $1,252. However, the state’s under-25 unemployment rate of 9.88% is among the highest in the ranking and places additional pressure on young residents trying to establish financial stability.

While Texas is the sixth state where it’s harder for young people to accumulate wealth, it’s even more challenging in other states. The study also includes the best states for Gen Z to build wealth.

Worst states for Gen Z to build wealth
Rank	State	Median household income for under 25s	Median house listing price	Median rent for 1 bedroom properties	Median rent for studio properties	Median monthly housing costs	Unemployment rate for under 25s	Index score (/100)
1	Louisiana	$33,457	$285,000	$871	$833	$982	12.53%	31.18
2	Alabama	$34,507	$340,000	$849	$802	$912	10.23%	36.16
3	California	$49,496	$771,500	$1,742	$1,599	$2,055	10.83%	38.15
4	New York	$47,697	$692,450	$1,456	$1,475	$1,587	12.56%	39.9
5	Georgia	$43,061	$399,900	$1,329	$1,565	$1,310	9.18%	42.44

Top 10 states for Gen Z to build wealth
Rank	State	Median household income for under 25s	Median house listing price	Median rent for 1- bedroom properties	Median rent for studio properties	Median monthly housing cost	Unemployment rate for under 25s	Score (/100)
1	Alaska	$61,050	$449,000	$1,094	$921	$1,395	8.38%	74.59
2	North Dakota	$45,859	$368,770	$744	$729	$972	4.45%	70.27
3	Wyoming	$51,657	$496,741	$739	$747	$1,033	9.08%	70.03
4	Rhode Island	$58,359	$599,000	$961	$976	$1,529	8.70%	68.87
5	Utah	$58,361	$599,950	$1,282	$1,143	$1,550	5.88%	67.71
6	Vermont	$53,639	$523,750	$1,026	$1,025	$1,341	7.12%	66.48
7	Maine	$53,875	$492,500	$969	$937	$1,168	10.20%	66.19
8	Minnesota	$50,452	$399,950	$1,127	$995	$1,364	7.35%	63.48
9	Iowa	$43,166	$295,000	$741	$851	$1,012	7.06%	63.25
10	Arkansas	$42,448	$305,000	$754	$763	$878	8.82%	61.11