The Cities Where Associates Get The Biggest Bang For Their Buck... In Pictures - Above the Law

"Historically, firms paid their New York, D.C., and California associates more than those elsewhere in the country, both as a premium for young lawyers living in more expensive markets and as a straightforward acknowledgement that the firm made more money off their Manhattan practice than their Atlanta practice. Firms need to attract the best talent to their most lucrative offices and then keep them there despite a crushing cost of living imbalance."

"To convey my conviction, I tried to come up with a post that could compare the cost of living in these markets in a way that could resonate. Since a picture is worth a whole bunch of words, I gathered home listings off Zillow in various markets that a first-year, NY-market salary associate could credibly afford under the "2.5x annual income" rule."

"Unlike the 2016 project, this ranking didn't assume a standard Biglaw salary, the National Jurist ranking took the mean reported young lawyer salary per location and adjusted it with a cost-of-living index. This created some weird results, like D.C. cracking the top 10 list for affordability because such a large percentage of their young lawyers are making serious bank. For that matter, New York came in the top 20."

Nine years ago, many Biglaw firms standardized associate compensation across offices in smaller markets. Historically, New York, D.C., and California associates received higher pay as a premium for expensive living and because Manhattan practices generated more revenue than other offices. Firms sought to attract and retain top talent at lucrative locations despite steep cost-of-living differences. After pay flattening, lower-cost cities became more attractive relocation options. A Zillow-based comparison using a 2.5x income affordability rule illustrated stark housing disparities. A National Jurist ranking adjusted mean young-lawyer salaries by cost-of-living, producing surprising affordability outcomes, including D.C. and New York placing highly.

Read at Above the Law