Ranking Major IB Cities
This is from an Associate/VP perspective and the assumption is that the individual concerned is beyond phase of 'partying' at which NYC obv wins.
Anyways The Major IB cities are:
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New York
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San Francisco
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Houston
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Charlotte
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Chicago
Please rank taking into account the following factors. Would be great on how you ranked these too:
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Lifestyle in city (independent of costs)
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Cost of Living
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Career trajectory (Strength/prestige of opportunities)
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Pay trajectory (does it remain same? for eg if top bucket Associate, VP in EVR whether Houston, NY or SF - would my pay more or less remain same as i progress)?
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Ability to buy a house/apartment down the line?
NY, SF, Chicago, Houston, Charlotte. Not sure latter two are major though
i think houston till a few years ago was the 2nd biggest city in terms of deals (due to energy). SF has overtaken it now i presume. so i would think if chicago is major then houston would be too.
curious how you came up with ranking though?
never worked in chicago but the col there beats NY and SF for sure. if i move there i can potentially buy a house rn so considering the criteria in my OP i was actuallly putting it #1 or 2 possibly lol. Houston and charlotte offer good cost of living but there isnt much to do there whereas chicago would still be qualified as a happening city. also unlike Houston, its not restricted to one industry by and large. Charlotte just seems very small but i included it since some of the big banks are headquartered there
NY, SF, Houston, Chicago, Charlotte.
As someone who’s in Houston, I’d say NYC, SF/LA, Chicago, Charlotte/Houston
NY, SF, Chicago, Houston, Charlotte. Should Charlotte even be considered here? I would think LA has more banking jobs and definitely ranks higher. Even places like Atlanta (Truist) or Tampa (RayJay, Baird) may have more IB jobs.
Atlanta and tampa certainly don’t have more IB jobs than CLT. Tampa has Baird (one team), RJ and a few tiny boutiques.
i dont think ANYONE is taking into account the criterion i set in the OP lol. surely #4 and #5 would bump up Chicago over SF or atleast merit a conversation?
Chicago property taxes are no joke. Yeah the prices are lower in Chicago but the difference in your monthly payment is smaller than you would think when you take property taxes into account.
One thing to consider- if you move to htx and work at a BB/EB then you'll be covering O&G
Yes you’ll probably cover some O&G but most of the major shops have energy transition mandates in play. When these kids hit the desk, it will probably be closer to 70/30 OG/ET. Would say it’s 80/20 now (but depends where you are).
Obviously more Canadian-centric, but would add Toronto to this list. There are a number of Canadians who do IB in NY for a few years and then move back to Toronto to either continue in IB or do Canadian PE
I don't think Houston gets enough credit around here. There are so many positives if you can get over not living in NYC/LA. It feels much less like a "major city" than Chicago, and you can get around the inner loop incredibly easily.
For context, I am a first year analyst at a reputable Houston bank. I pay $1200 a month to have a badass apartment near downtown. I can get from my place to the parking garage in under 8 minutes. The food scene here is absurd and there are a million places to wet your whistle. In terms of going out, there are a ton of bars, many of which have cool outdoors spaces. It's also pretty affordable - I'd say beers are 4 to 7 bucks and mixed drinks are 7-12. Clubs and nice restaurants will be priced higher, but still cheaper than CHI/NYC.
Work is obviously a large commitment, but the people aren't total dicks like they are at top NYC shops. From my experience, it's been far more chill in terms of personalities and deadlines. Also, people always bitch about the lack of exit opps for energy bankers. I haven't found this to be true at all. Yes, energy PE is dwindling, but capital is returning to the space. Also, there are a bunch of infra/generalist funds that will give you looks. In terms of comp, I'm expecting about 175 all in. No state income tax so I'll probably keep about 75% of that. Pretty good when you factor in the relatively low COL as well.
Don't mean to brag, but I just wanted to highlight some of the positives of Houston that I think are often overlooked. Definitely worth a look if you are open to non-NYC banking.
+1 SB
Houston doesn't get enough cred as a fun city to spend your 20s / 30s (mostly because a. it's not a tourist destination and b. it's really fucking hot here).
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Lifestyle: NY is best if you value fast pace, diversity, dining and entertainment options, and 24/7 activity, but worst if you’d prefer a more relaxed environment and community feel. SF is probably best if you’re into nature, walkability, and “techy” culture, and either it (or Charlotte) has the best weather. Chicago is similar to NY (albeit less extreme in nearly every regard besides weather). Houston is a major city but not one that is nationally known for culture or excitement. Charlotte is much smaller, but perhaps a good choice if you prefer laid back and quiet. Overall, for most young people in finance, the ranking would be NY, SF, Chicago, Houston, Charlotte. For an adult with a family, I’d literally reverse this order.
Cost of Living: SF and NYC are ridiculously expensive; it’s not remotely close. Chicago is leagues behind, followed by Houston and Charlotte.
Career Trajectory: For both sellside and buyside, NY has an edge by far, with nearly every BB, EB, MM, and major PE firm/HF having some presence in NYC or nearby Connecticut. I’d put SF second because of its tech presence. Then maybe Chicago, Houston, Charlotte.
Pay Trajectory: NY, SF, Chicago, Houston, Charlotte (see above)
Buy House/Apartment: Charlotte, Houston, Chicago, NY, SF
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If you mention Charlotte before LA, you either work at Wells or BAML.
What about Dallas? Houston cost of living, but not largely limited to one industry. Goldman and Houlihan are two examples off the top of my head that have a presence. From what I’ve read, more and more banks are looking to make a presence
Dallas doesn’t get enough credit on this forum. Great place to live long-term and settle down.
Poor food scene.
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