Because of its high cost of living, San Diego turns out to be a difficult city in which to build wealth, ranking near the bottom in a national survey released Monday.
Online financial publisher Bankrate.com ranked the largest metropolitan areas in the U.S. cities according to how strong of an environment they provide for making and saving money. The ranking is based on after-tax, savable income; the job market; residents’ debt; human capital; access to financial services; and the local housing market.
The Houston metro area came out on top because of its excellent job market, lowest consumer debt and high savable income. San Diego was 18th on the list. Here are the top five:
- Houston
- Washington, D.C.
- Cleveland
- Detroit
- New York City
“Many of the cities that ranked high in the study may not be synonymous with wealth in the public mind, but they do a better overall job of creating an environment for typical households to get ahead financially,” said Bankrate.com banking analyst Claes Bell.
“For instance, living in a killer job market is great, but if you’re spending half your income on rent, it’s going to be hard to save and invest. You have to look at the whole picture,” he added.
Bankrate.com said that while San Diego may be a great option for people who already have a substantial nest egg, it came in last place on the list due to residents’ low savable income after taxes, relatively high unemployment and the average debt burden.
Phoenix and Los Angeles ranked just above San Diego, at 17th and 16th.
The complete study is available online.
