In this article, we will talk about the 15 best U.S. cities for finance workers to live in. You can also take a look at the 15 Best Cities for Hedge Fund Managers.
The US has long been a global leader in finance, offering many employment opportunities and a high standard of living for finance professionals. The finance sector, accounting for around 8% of GDP and employing over 9 million people, is a significant contributor to the US economy. The United States capital markets are amongst the largest globally, representing 40% of global fixed-income markets and 41% of global equity. Within the country, they contribute to funding 72% of economic activity.
The jobs provided by the financial sector are spread across the country, with over 90 percent situated outside New York State. For instance, as of 2021, Florida accounted for 420,000 jobs, Illinois for 315,000, California for 585,000, and Texas for 591,000. These are also among the best states for finance jobs.
Financial institutions supply capital to all sectors of the U.S. economy, including agriculture, manufacturing, and various service industries. These investments have a multiplier effect and significantly improve overall growth and job creation beyond the direct impact of the financial sector. For example, each job within the US financial sector results in the creation of 3.6 jobs in other sectors of the economy.
The US financial services industry is well-connected to the global economy. Financial firms based in the US export their services worldwide and maintain a consistent trade surplus. In fact, a greater number of US jobs rely on the export of financial services compared to the export of computers or motor vehicles. The financial services sector engages directly in international markets through foreign direct investment. This international investment is mirrored by $760 billion invested in the US by foreign banks, brokers, and other institutions as of 2021.
During the COVID-19 pandemic, the finance industry also played an important role in raising funds, supporting healthcare, and aiding affected communities. The industry is now set to play an important role in ensuring sustainable growth for the US and the global economy. As of 2018, the climate finance market, covering both efforts to reduce emissions and adapt to climate change, totaled $600 billion.
Banks have committed to aligning their portfolios with a goal of achieving net zero emissions by 2050. A recent analysis of global sustainable finance commitments by banks reveals commitments totaling at least $4 trillion, covering varying time frames, generally over the next 5 to 10 years. This collective commitment translates to an estimated annual investment of around $700 billion towards sustainable finance initiatives.
One of the popular banks contributing to the US financial landscape is Citigroup Inc (NYSE:C). According to the bank’s 2023 ESG Report, Citigroup Inc (NYSE:C) has facilitated $441.2 billion toward sustainable finance as of the last year, marking progress toward its goal of investing $1 trillion in the sector by 2030.
Here’s what Patient Capital Management said about Citigroup Inc (NYSE:C) in its Q1 2024 investor letter:
“Citigroup Inc. (NYSE:C) gained 24.1% in the quarter continuing its uptrend from 4Q. The company is on a multi-year journey to reorganize the business and reach return on tangible common equity of 11-12% by 2026 (and higher further out). Citigroup is finally taking the hard actions necessary, cutting unprofitable departments, taking out middle management layers, and reducing overall headcount. As of early March, the company was 70% done with its business exits and had reduced management layers by 1/4th. We have high confidence Citi will hit its targets. In the meantime, the company is returning cash to shareholders, which could meaningfully increase if the Basel III capital proposal is changed.”
The importance of the finance sector is evident from our discussion above. According to the US Bureau of Labor Statistics, jobs for personal financial advisors are projected to grow by 13% from 2022 to 2032. With this context in mind, let’s take a look at the best U.S. cities for finance workers to live in.
A financial graph with team of finance professionals analyzing data and trends.
Our Methodology
To shortlist the best U.S. cities for finance workers to live in, we collected data on various important metrics such as the average annual pay in the sector, cost of living variations among cities, availability of job opportunities in financial firms, and overall living standards.
We also collected information from Reddit threads such as r/FinancialCareers and r/immigration to gain personal insights from a wider audience. Using these inputs, we calculated a weighted average score for each city based on the 4 key metrics. This approach helped us identify cities that not only offer competitive salaries and career opportunities but also ensure a comfortable and affordable lifestyle for finance professionals. The cities have been ranked in ascending order of their scores.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
15 Best U.S. Cities for Finance Workers to Live in
15. San Antonio, TX
Score: 7.41
San Antonio, Texas is a city offering a range of opportunities in the field of banking and insurance. USAA is the key player in this regard, providing a wide range of financial services including investment management, banking, and insurance. The city is also home to major American credit unions, including Security Service Federal Credit Union.
14. Des Moines, IA
Score: 11.69
Des Moines is recognized as an important global hub for the insurance industry, ranking just behind Hartford, Connecticut, and major cities like New York. The city is home to companies like Principal Financial Group. The average annual pay in the city for a worker in the financial activities sector stands at $146,380, according to data from the U.S. Bureau of Labor Statistics (BLS) as of Q4 2023.
13. Miami, FL
Score: 14.15
Miami’s economy benefits significantly from its financial sector, which employs about 7% of its population in finance and insurance. The city is also becoming a growing center for financial technology (fintech), thanks to its gateway status to Latin America. Moreover, Miami has seen an increase in hedge funds and private equity firms. The average annual pay in Miami for a worker in the financial activities sector stands at $175,396 as of Q4 2023.
12. Philadelphia, PA
Score: 14.44
The financial industry in Philadelphia employs over 200,000 people, making it one of the largest job creators in the area. Philadelphia stands out as one of the top cities in the US for finance professionals due to sufficient job opportunities and its relatively affordable cost of living compared to cities such as Chicago.
11. Milwaukee, WI
Score: 14.64
In Milwaukee, you’ll find major financial institutions like Northwestern Mutual, one of the largest providers of life insurance and financial services in the US. This sector is important to the local economy, employing over 50,000 people and contributing about 10% to its GDP. With its high-quality living conditions, it’s no surprise that many finance professionals choose to move here to advance their careers.
10. Minneapolis-St. Paul, MN
Score: 14.67
Minneapolis-St. Paul area hosts several top Fortune 500 financial companies like U.S. Bancorp and Ameriprise Financial. The financial services industry here employs over 150,000 people, driving significant economic activity. The city is known for its strong banking, insurance, and investment management sectors, including major players like Wells Fargo. With its dynamic economy and decent career opportunities, Minneapolis is regarded as one of the best U.S. cities for finance workers to live in.
9. Denver, CO
Score: 14.74
Denver, Colorado has become a major hub for financial services. The city ranks ninth on our list of the best U.S. cities for finance workers to live in. The average annual salary for a professional in the financial activities sector in Denver stands at $187,096 as of Q4 2023.
8. Dallas/Fort Worth, TX
Score: 15.39
Dallas, Texas, is a popular choice for financial firms for several reasons, including business-friendly policies, no state income tax, and reasonable living expenses. Finance specialists in Dallas earn between $70,669 and $166,816 per year on average. Accounting for the average cost of living expenses, an individual can save up to 50.2% of their income at the end of a year.
7. Princeton, NJ
Score: 16.28
Princeton is among the top 10 best U.S. cities for finance workers to live in. In Princeton, NJ, the highest-paying industry for financial advisors is Financial Services, with a median total pay of $172,083. The city hosts popular finance companies such as Merrill Lynch, Wells Fargo Advisors, Morgan Stanley, and UBS Financial Services.
6. Hartford, CT
Score: 16.44
Hartford, Connecticut, a powerhouse in the financial services sector, is particularly known for housing numerous insurance firms. It is home to established insurance heavyweights such as The Hartford, Travelers, and Aetna among others that have a strong presence in this region. The city’s strategic location near Boston and New York City improves its appeal as one of the best places for finance jobs in the USA.
5. Charlotte, NC
Score: 16.90
Charlotte, located in North Carolina, has become one of the major financial hubs in the USA, known for its strong banking and financial sectors. Key institutions like Bank of America and Truist Financial have headquarters and operations here.
4. New York City, NY
Score: 18.32
New York City is considered the world’s financial capital, influencing global markets with its active financial sector centered around Wall Street. Major institutions like Goldman Sachs, JPMorgan Chase, and Citigroup drive the city’s economy and shape global financial trends. Living in New York City is expensive, with the cost of living being around 37% higher than the state average. Despite the high prices, the city offers attractive job opportunities. According to Glassdoor, the average salary for a finance professional in New York City stands at $114,753 per year, making it one of the best cities for finance jobs in the world.
3. Washington DC, Metro Area
Score: 18.34
Washington DC hosts many financial institutions including CapitalOne, Wells Fargo, and Bank of America. The average annual salary for a finance professional in Washington DC is around $164,891 per year. It ranks third on our list of the best cities in the U.S. for finance workers to live in.
2. Chicago, IL
Score: 21.15
Chicago, Illinois is a key player in the Midwest’s financial services industry, driven by strong banking and insurance sectors. Major institutions like Northern Trust, CME Group, and Allstate Insurance provide a wide range of financial services and create numerous job opportunities in the city. Chicago ranks second on our list of the best U.S. cities for finance workers to live in.
1. Boston, MA
Score: 25.93
Boston, MA secures the first place on our list of the top U.S. cities for finance professionals. The city is well-known for its strong mutual fund management and venture capital sectors. Some of the popular financial sector companies operating in Boston include Fidelity Investments, Morgan Stanley, and Goldman Sachs.
Institutions like Harvard and MIT continually produce skilled graduates who contribute to the state’s finance industry. Professionals with finance backgrounds in Boston typically earn between $81,500 and $118,400 annually. Boston also ranks seventh on our list of the cities with the highest average salary in the US.
At Insider Monkey, we delve into a variety of topics, ranging from the best U.S. cities for finance workers to live to business aspects; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
