Millennial home buyers have been getting a bad rap in the press. Rising student loan debt, desire to live in expensive areas and lagging wage increases have been cited as reasons Millennials haven’t taken the plunge to being home owners. Many are reluctant to buy, which has led to the lowest homeownership rates for young people in years.
Rates of Young Adults Owning Homes Hit Low in 2014
According to NAR’s Chief Economist Lawrence Yun, homeownership rates for young adults hit a high back in 2006 with 43% of Americans 35 or under owning homes. Then, in 2014, that pendulum swung the other direction and dropped to 36%.
Millennials Priced Out of Popular Metros
Millennials who live in expensive metros like San Francisco and New York have been priced out of the market due to tight credit conditions, limited inventory, limited job growth and flat wage increases. Many Millennials who want a lower cost of living are realizing they need to find other, more affordable cities so they can work towards their goal of homeownership.
Austin Named #1 on Best US Cities for Millennial Home Buyers
Leading the charge, Austin was named #1 on the best US cities for Millennial home buyers. Austin was named as a standout because of its growing young adult population, solid job growth rates and relatively affordable home prices. Recently, Austin has gotten a lot of press for its increasing home prices, but when you compare Austin’s prices to many other metros, you’ll see they are pretty affordable.
Best US Cities for Millennial Home Buyers
The National Association of Realtors (NAR) examined 100 US metros and came up with 10 that are poised to make Millennials home buyers. If you’re a Millennial and looking to become a homeowner, you might want to check out the 10 best US cities for Millennial home buyers listed below in alphabetical order.
- Austin, TX
- Dallas, TX
- Denver, CO
- Des Moines, IA
- Grand Rapids, MI
- Minneapolis, MN
- New Orleans, LA
- Ogden, UT
- Salt Lake City, UT
- Seattle, WA
Here are the strong runner ups:
- Madison, WI
- Nashville, TN
- Omaha, NE
- Raleigh, NC
- Washington D.C.
How Does Austin Compare to the Other Cities?
NAR created this infographic to compare the top five cities for Millennial home buyers to learn how much they’d need to make, median home prices and unemployment rate. You can read more about the study here.
Are You a Millennial Looking for a More Affordable Place to Call Home?
We top 10 reasons we relocated to Austin. After being here for nearly 6 years, we are confident we made the right choice and plan to be here for a long time.
Thinking of Buying a Home in Austin?
We know the area well and can help you find the area of town you would most enjoy living. Whether you’re looking to buy a house or a condo, we take a consultative approach and help you buy right, so you won’t have to worry about making the wrong choice or overpaying. To learn more about our free buyer representation program, check out our Austin Home Buyers page. Then, call us at (512) 827-8323, email info@11OaksRealty.com or fill out our Buyer Survey to schedule a no obligation consultation.