Boardman River in Traverse City, Michigan.
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More American millennial millionaires live in Traverse City, Michigan, than any other ZIP code in the US, according to a report by Coldwell Banker.Traverse City has seen an urban revival in the past decade, with a walkable downtown, good food and drink, and cultural offerings.Its gig economy is also evolving, attracting start-up entrepreneurs and those who want to work remotely.Visit Business Insider’s homepage for more stories.You won’t find the biggest hub for wealthy millennials in a Silicon Valley ZIP code.Instead, look to ZIP code 49685: Traverse City, Michigan. That’s according to a new report by Coldwell Banker, which looked at the top 10 ZIP codes where America’s 618,000 millennial millionaires live.The Coldwell Banker Global Luxury program worked with wealth intelligence data and research firm WealthEngine to analyze the lifestyles of millennial millionaires, from wealth creation and property investments to spending trends. It defined millennial millionaires as those ages 23 to 37 with a net worth of more than $1 million.Located along the shores of Lake Michigan, Traverse City has undergone an “urban renaissance,” according to the report. It has a lot to offer: year-round recreational activities, strong food and drink, and cultural experiences in the form of many festivals. It’s also seeing growth in its start-up scene.As a result, the city is attracting many former natives of the area and young entrepreneurs. Here’s a look at Traverse City.
Welcome to ZIP code 49685, home to Traverse City, Michigan. It’s located in northwestern Michigan on Lake Michigan.
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Traverse City is about a four-hour drive from Detroit. According to the US Census, its population is 15,651. Weather doesn’t typically exceed 80 degrees Fahrenheit here, but can dip down to 14 degrees in the winter, according to the official Traverse City website.
Historically, it’s been a tourist destination, but it’s now home to more wealthy millennials than any other ZIP code in the US.
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In the past decade, Traverse City has undergone an “urban renaissance.” It has a bright food scene, microbreweries, wineries, and a walkable downtown with lots of shops and restaurants.Traverse City is home to Northwestern Michigan College, whose culinary school churns out chefs. That’s created a colorful culinary scene in the area, from tacos and ramen to farm-to-table restaurants, according to Jodee Taylor for Matador Network. Its drink scene is also strong. There are more than 12 wineries to choose from in Grand Traverse County, and over 20 in the neighboring county, Steve Reddicliffe reported for The New York Times. In November, there’s Traverse City Beer Week, and in 2020, the city is getting a new spring beer festival for craft beer lovers. In the summer, there are paddling pub tours to six different breweries along the lake and river.
In addition to its gastronomic scene, Traverse City is also home to a lot of culture — think music, arts, and festivals.
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Traverse City hosts a number of festivals throughout the year. Its most notable is the annual National Cherry Festival during the summer, which it bills as one of the country’s largest festivals with more than 500,000 visitors.It also has a dash of Hollywood. Filmmaker Michael Moore helped launch the Traverse City Film Festival in 2005, reported Reddicliffe. In 2017, it attracted 120,000 moviegoers and exhibited 181 movies.It’s also home to The Dennos Museum, which has one of the largest collections of Inuit Art in the US.
Wealthy millennials have been increasingly attracted to the four-season town for its work-life balance.
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Shawn Schmidt Smith, associate broker/owner for Traverse City-based Coldwell Banker Schmidt, said in the report that locals are constantly hopping between play and recreation mode during the week, as Traverse City offers recreational opportunities year-round. It’s home to Sleeping Bear Dunes, which consists of 64 miles of beaches, forested islands, and hiking trails. At Grand Traverse Bay, you can do everything from scuba dive to play beach volleyball.”It’s a small town where you’re never more than 10 minutes from a body of water, which makes it easy to get outside,” she said. “On a Tuesday when you’re done with work, you can be on the bay SUPing or in a river fly-fishing within 20 minutes.”Traverse City resident Brianne Farley told Jacob Wheeler: “I like that you can be in downtown Traverse City and then three minutes later be in a place that feels like the middle of nowhere, whether that’s out on the bay, on a farm or cherry orchard in Leelanau, or snowshoeing through the woods.”
Traverse City also has strong schools, according to the report, and a full-service airport.
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Traverse City’s Cherry Capital Airport offers airline service to more than 300 destinations around the world and the US. American Airlines recently announced new summer weekend routes to Traverse City from Philadelphia and Washington DC beginning in 2020. Once there, it’s easy to get around via the BATA (Bay Area Transportation Authority) and shuttle companies.
Traverse City has always had a robust second-home market, where luxury homes generally begin at $500,000.
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“The younger affluent like that they can get a fabulous home on, near, or overlooking vineyards, fresh water, or beaches for a fraction of the cost of larger metropolitan areas,” Smith said.Traverse City gives wealthy millennials what they’re looking for in a home. They “tend to prefer markets that are more affordable — often in suburbs or second-tier cities, where their dollar will carry them further,” the report reads.
Most of the wealthy millennials purchasing property here have a connection to the area, according to the report.
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“They vacationed here as kids or they grew up here, moved away, and when they were ready to settle down, Traverse City became a natural fit,” Smith said, adding that they view buying real estate as a way to build wealth.She continued: “They understand that this region can be a very good long-term play. We see a lot of millennials deciding that this is a place that they can call home for the rest of their lives. It’s not uncommon that their parents, grandparents, and siblings also end up making Traverse City their home base.”Howard Lovy of Crain’s Detroit Business called some of these millennials “boomerangs.”Consider Farley, who grew up in Traverse City. She was living in Brooklyn, and on a trip back to visit her hometown, she realized that Traverse City “had changed,” wrote Wheeler. She noticed more people in their 20s and 30s, and ended up moving back for its slower way of life and affordability factor.
Traverse City is attracting many young entrepreneurs and remote workers.
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Many of the “boomerangs” work in marketing, web design, or IT — all industries in which you can work remotely from anywhere, Lovy reported. He spoke to several boomerangs who returned only to launch their own website or social marketing companies.”I think, more and more, people choose the lifestyle and either start a business or become that free agent where they may have three or four different clients,” Rob Fowler, president and CEO of the Small Business Association of Michigan, told Lovy. “They can do it from anywhere in the world, and they choose to do it from Traverse City.”Traverse City was named the fourth-most popular micropolitan areas for new start-ups, according to the US Census. Satellite communications service ATLAS Space Operations and online car marketplace DriveShare are both located there. Co-working spaces, such as Studio Smiths, have also cropped up.
Traverse City is increasingly making efforts to support its growing gig economy and start-up scene.
Traverse City Courthouse.
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Erin Monigold launched Traverse City Tweetup, monthly meetings that attract hundreds of freelancers in the area, and the Traverse City Geek Breakfast, monthly gatherings of tech professionals, Lovy reported.In 2018, tech incubator 20Fathoms launched to help support entrepreneurs. In 2019, it launched Healthtech program HealthSpark — its goal is to attract healthtech companies to the area and create high-paying jobs, Craig Manning reported for The Ticker.20Fathoms Executive Director Andy Cole told Beth Milligan of The Ticker that people everywhere from San Francisco to Ann Arbor moved into the city’s incubator space.”A lot of people want to move here for lifestyle reasons … but are worried about their careers,” he said. “We’re trying to flip the script, where we’re getting them interested in working here first and then when they get here, they find it’s an incredible experience.”
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