The Best Cities for Building a Nest Egg

Photo (cc) by deltaMike

The Big Apple is home to the dreams of many Americans and the big money of Wall Street, but the nation’s best cities for building household wealth are less glamorous.

That’s what Bankrate.com concluded after analyzing 18 of the biggest metropolitan areas based on key financial factors that affect household wealth. Houston came out No. 1, and the Midwestern metropolises of Cleveland and Detroit ranked ahead of New York City.

The website defines household wealth as “a household’s total assets, both financial (stocks, bonds, checking and savings accounts) and nonfinancial (homes, cars, precious metals), minus its total debt.”

Ray Boshara, director of the Center for Household Financial Stability at the Federal Reserve Bank of St. Louis, tells Bankrate that this type of wealth is key to Americans’ ability to invest in themselves and their families, such as by buying a home, starting a business, getting an education or relocating for a new job.

He states:

“When people have wealth they have a stake in something, a sense of pride, a sense of ownership, and that sense of ownership changes their behavior. They’re more likely to be engaged in their neighborhoods, in their schools, and with their kids, and, very importantly, to engage in future planning.

Wealth allows you to imagine a different kind of future than you could if you didn’t have wealth.”

For its analysis, Bankrate culled data from about a dozen sources, including expert economists, federal government agencies, independent nonprofit organizations and trade groups. The website then ranked cities based on financial factors such as:

  • Residents’ savable income (what’s left over after taxes and household expenses).
  • The local labor market (whether workers can find jobs with competitive pay).
  • The local housing market.
  • Residents’ debt level.
  • Residents’ access to financial services (that allow residents to invest, save and borrow efficiently).

Based on its analysis, Bankrate ranked the 18 cities in this order:

  • Houston
  • Washington, D.C.
  • Cleveland
  • Detroit
  • New York
  • Dallas-Fort Worth
  • Baltimore
  • Miami
  • Minneapolis-St. Paul
  • Chicago
  • Boston
  • Seattle
  • San Francisco
  • Atlanta
  • Philadelphia
  • Los Angeles
  • Phoenix
  • San Diego

Do you believe the cities you’ve lived in have helped or hampered your ability to build your household wealth? Sound off in our Forums. It’s the place where you can speak your mind, explore topics in-depth, and post questions and get answers.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
10 Ways Retailers Trick You Into Spending More
10 Ways Retailers Trick You Into Spending More

Think you’re a savvy shopper? Find out how retailers persuade you to dig more deeply into your wallet.

30 Purchases That Will Start Saving You Money Immediately
30 Purchases That Will Start Saving You Money Immediately

Sometimes, you’ve got to spend to save. These canny deals are a good bet for savings.

19 Purchases That Buyers Almost Always Regret
19 Purchases That Buyers Almost Always Regret

Think twice before buying these things.

The 3 Worst Money Mistakes You Are Making at the Gas Station
The 3 Worst Money Mistakes You Are Making at the Gas Station

Beware these cash-guzzling missteps when you stop at any gas station.

7 Small Appliances You Don’t Need — and What to Use Instead
7 Small Appliances You Don’t Need — and What to Use Instead

Here’s how to get the job done without blowing money — or losing counter space.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Senior Discounts for Anyone Age 55 or Older
11 Senior Discounts for Anyone Age 55 or Older

There is no need to wait until you’re 65 to take advantage of so-called “senior” discounts.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

The 10 Most Commonly Stolen Vehicles in America
The 10 Most Commonly Stolen Vehicles in America

A new model parks atop the list of vehicles that thieves love to pilfer.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

10 Reasons Why You Should Actually Retire at 62
10 Reasons Why You Should Actually Retire at 62

If you can, here are several good reasons to retire earlier than we’re told to.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

14 Things That Are ‘Free’ With Medicare
14 Things That Are ‘Free’ With Medicare

These services could save you money and help prevent costly health problems.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

10 Things You Should Never Do With Bleach
10 Things You Should Never Do With Bleach

Does the pandemic have you reaching for bleach more than ever before? Learn the ins and outs of using this powerful disinfectant.

15 Amazon Purchases That We Are Loving Right Now
15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.