Here Are The Cities Where Millennials Can Actually Afford To Buy Homes
I just turned 30 last week. At 30 years old, my dad owned his own masonry company and was in the process of building a home in the suburbs of Boston. I was late on rent last month in my tiny Brooklyn apartment. I feel awful about myself. So awful that I have to remind myself that generally speaking, millennials are dealing with 20% lower earnings than the Baby Boomer generation and historically high student loan debt.
But, according to a new study by the real estate information site ABODO, millennials are started to dabble in the housing market. Data from the National Association of Realtors show that millennials now represent the largest share of the home buying population nationally, at 34%. But at the same time, as TIME points out, the share of homeowners under age 35 shrunk 5 percentage points between 2001 and 2015.
The ABODO study shows that millennials are having a difficult time buying houses in a specific parts of the country (dense coastal metro areas), while other regions–namely the Midwest and Southwest–are experiencing disproportionally high buying volumes.
Millennials are struggling to buy in markets like New York, San Francisco, and Los Angeles for the simply reason that the prices are too damn high.
For instance, in Los Angeles, median-earning millennials saving 15% annually would need to wait 32.2 years to afford a 20% down payment of $112,033. [TIME]
Although millennials are buying up houses in the Mid and Southwest, as a whole, we are finding it much harder to buy houses than the generations before us, and prices aren’t the only reason why.
“Young adults used to account for a much larger portion of homeowners than they do today — the prevalence of college, mounting student loan debt, and an increasingly tight housing market are slowly pushing back the age of first-time homebuyers,” ABODO reports.
Millennials’ homeowner problems defined in one tweet.