BankRate recently released analysis of the top and bottom markets for first time home buyers, finding that although states like California, New York, Texas, Colorado, Oregon, and Massachusetts are all large attractive to young millennials, they are the for first-time buyers to purchase in due to lack of affordability.
On the other hand, the best locations for potential buyers to consider purchasing first homes are in the Western and Midwestern states such as, Iowa, Utah, Minnesota, and Kansas to name a few.
The five major measuring tools used to rank each state for first time buyers were housing affordability, the job market for young adults, housing market tightness, credit availability, and homeownership among the under-35 crowd.
"When you have a state like California where the housing prices are really high and the rental housing is also really expensive, unless you have access to wealth from some source that's not your job, it's going to be really hard for you to amass enough of a down payment, and also the kind of credit that you need to get into the housing market," Rolf Pendall, Co-director of the Metropolitan Housing and Communities Policy Center at the Urban Institute, told BankRate.
The top three most affordable locations in the country are Iowa, Ohio, West Virginia, while Hawaii, California, and Oregon rounded out the bottom three least affordable markets.
BankRate found that qualifying for a mortgage loans can be a challenge for millennials because of their credit history in comparison to older generations that have the capital to put on a down payment.
The top three states for credit availability are Alaska, Minnesota, Nebraska and the bottom West Virginia, Mississippi, Louisiana.
Having steady employment is a must when you are purchasing a home and the best markets in 2016,were North Dakota, South Dakota, Utah in comparison to Alabama, West Virginia, and New Mexico.
Lawrence Yun, Chief Economist at the National Association of Realtors told BankRate, "Hopefully with an improving economy, their wage rates begin to rise . . . giving a better chance for millennials in the future."