According to a new research by NAR (National Association of REALTORS), becoming a homeowner is currently more possible in some less expensive areas with steady job growth, though financial obstacles and lifestyle choices are hindering the journey to homeownership for many young adults.
NAR chief economist, Lawrence Yun says that homeownership rate for young adults under the age of 35 peaked in 2005 (43 percent) and fell to 36 percent in the first quarter of 2014.
“Limited job prospects, student debt and flat wage growth have combined with tight credit conditions and low inventory to price Millennials out of some of the top cities such as New York and San Francisco,” he said. However, NAR research finds that there are other metro areas that Millennials are heading to where job growth is strong and homeownership is more attainable and these markets are well-positioned to soon experience a rise in first-time buyers as the economy improves.
NAR analyzed employment gains, population trends, income levels and housing conditions in the largest 100 metropolitan statistical areas across the country to identify the best buying markets for millennial homebuyers. These top 10 metro areas were chosen for their above-average share of current millennial residents and recent movers, favorable employment opportunities and housing affordability. Inventory availability are also considered.
The best purchase markets for aspiring millennial homebuyers are (listed alphabetically):
- Austin, Texas
- Des Moines, Iowa
- Grand Rapids, Michigan
- New Orleans
- Ogden, Utah
- Salt Lake City
Other markets with strong potential for attracting millennial homebuyers include:
- Madison, Wisconsin
- Nashville, Tennessee
- Omaha, Nebraska
- Raleigh, North Carolina
- Washington, D.C.
NAR President Steve Brown said favorable affordability in these markets will ultimately be met with inevitable life milestones to increase home buying activity. These identified areas are poised to lead the way in helping Millennials realize their American Dream of becoming a homeowner.
At Bandy Homes, we will guide you through all phases of the home buying process in Denver. We can also help you to get started on relocation with our Denver Relocation guide and can show you some terrific homes in Cherry Creek, real estate in Denver Highlands, and a wide variety of gorgeous homes in Stapleton.
Our trusted professionals will be there to help you every step of the way
Until next time,
Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows