Glassdoor recently published a list of the Top 25 Cities where your pay will go the furthest. Who topped the list!? Yep, it’s DETROIT! GD found that the Cost of Living ratio in Detroit is 50%! That basically means that when living in Detroit you get to use 50% of your income for things other than bills! What is the Cost of Living ratio in San Fransisco (the lowest of all American cities)? 11%! Basically, you only get to use, for your own enjoyment $.10 of every dollar you earn in San Fran!
What is the Cost of Living ratio in San Fransisco (the lowest of all American cities)? 11%! Basically, you only get to use, for your own enjoyment $.10 of every dollar you earn in San Fran!
So, if you read this blog a couple times you know I’m a fan of Detroit! Everyone loves a comeback story and Detroit might be the single biggest comeback story on the planet right now. Being at the top of this list just confirms what others in and around the Midwest have already been seeing.
Here’s the Top 10 in order:
- Detroit, MI
- Memphis, TN
- Pittsburgh, PA
- Cleveland, OH
- Indianapolis, IN
- St. Louis, MO
- Cincinnati, OH
- Birmingham, AL
- Kansas City, MO
- Louisville, KY
So, what jumps out about this list? For the most part, it’s mid-sized, midwest cities. Low cost of living. Four seasons. A lot of Applebee’s restaurants (at least that’s what the people on the coasts think!). One southern city on the list in Bham – which I hear from Kris Dunn and Dawn Burke is a hidden treasure.
I’m a midwest guy, born and raised. Went to college in the front range of the Rocky Mountains. Have visited every big city in the U.S., multiple times. Big cities are great, but not the best place to raise a family. California’s weather is awesome if you like paying $1 million dollars for 700 square foot home next to a highway.
The reality is startups and Fortune 500 companies are beginning to see what Glassdoor found in putting this list together. Google has a growing campus in Ann Arbor, MI, located about 40 miles from downtown Detroit, about 15 miles from the Detroit airport. It’s easier to attract and retain a Midwest workforce than it is when you’re primarily trying to recruit to the coasts.
This is especially true when your workforce starts to get to the age where they want to settle down, start a family and buy a house. Sure, it’s fairly easy to get college-aged kids to relocate from the midwest to California, New York or Boston. The trick is keeping them there! In Michigan, I see this every summer. The kids come back to have their weddings. Once they’re back, they begin to feel that pull to stay ‘home’.
This is why Midwest companies that are great at recruiting all have some sort of Boomerang recruitment strategy. Most are diving deep in their databases to find students who graduated over the past five years and building a database of 1-5 year experienced pros they are reaching out to constantly, ‘welcoming’ them to come back and enjoy the riches of the Midwest!
I love a good comeback story…I grew up not far from Toledo. But I’m more excited about #4 on that list. Once a Buckeye…always a Buckeye… O-H!! 🙂
I think it also benefits companies to hire in less-than-fabulous cities because it’s cheaper to live there so they can low-ball people on salaries. Awesome! 😉