Now that we’re well into the year of the millennial migration — when young adults are expected to overtake Generation X as the largest group of home buyers — it’s time to consider where millennials can afford to buy.
The answer is discouraging for those wanting to settle along a coast.
In New York, Boston and Miami, fewer than 60 percent of the homes for sale on Zillow in the fourth quarter 2014 were affordable for typical 23- to 34-year-olds. Zillow determined this by taking the median income of young adults in each metro, and assuming they put 5 percent down and spend 30 percent of their monthly income on mortgage payments.
The situation out west was even worse, with just a quarter of homes in Los Angeles and Honolulu affordable. Prices have increased so much even in smaller California metros like Sacramento, Fresno and Modesto that more than 60 percent of what’s on the market is out of reach for millennials.
Nationally, 70 percent of homes on the market were affordable to young adults, with many coastal cities falling short of that, including Portland (51 percent), Seattle (63 percent), Washington, D.C. (64 percent) and Houston (68 percent).
Metro areas in the middle of the country offer more choices. Here are some of the most affordable:
|% Homes for Sale That Are Affordable for Millennials
|St. Louis, MO
|Des Moines, IA
|Kansas City, MO
Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.