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:
| Metro | % Homes for Sale That Are Affordable for Millennials |
| Akron, OH | 90 |
| Buffalo, NY | 86 |
| St. Louis, MO | 85 |
| Des Moines, IA | 85 |
| Pittsburgh, PA | 82 |
| Louisville, KY | 80 |
| Kansas City, MO | 80 |
| Indianapolis, IN | 79 |
| Omaha, NE | 77 |
| Minneapolis, MN | 75 |
Check out Zillow Research for more details on areas where millennials can find affordable homes to buy.
via Zillow Blog - Real Estate Market Stats, Celebrity Real Estate, and Zillow News http://ift.tt/1P1kV1H
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