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Millennials are able to become homeowners in these 10 affordable metro areas that boast steady job growth and lower income qualifications needed to purchase a home.
New research by the National Association of Realtors (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 purchase markets for millennial homebuyers.
Although millennials occupy the largest share of homebuyers for three consecutive years, the first-time buyer share and the homeownership rate for young adults under the age of 35 remain depressed at levels not seen in decades, according to Lawrence Yun, NAR Chief Economist. Historically low mortgage rates, high rental costs, and low unemployment do not seem to be pushing these numbers upward.
“Even with potentially higher incomes, prospective millennial homebuyers residing in some of the most expensive cities in the country face the onerous task of paying steep rents while trying to save for an adequate down payment,” Yun said. “However, for those currently living in or looking to move to a more affordable part of the country, there are metro areas right now with solid job growth and that offer a smoother path to homeownership.”
NAR’s study found that the best purchase markets for millennials buyers currently are (listed alphabetically):
- Austin, Texas
- Charleston, South Carolina
- Denver
- Minneapolis, Minnesota
- Ogden, Utah
- Portland, Oregon
- Raleigh, North Carolina
- Salt Lake City
- Seattle
- Washington, D.C.
NAR also identified other markets with promising potential for millennials that include: Boston, Dallas, Des Moines, Iowa, Jacksonville, Florida, and Nashville, Tennessee.
"An overwhelming majority of young renters recently said they eventually want to buy a home,” Yun said. “As long as new and existing-home supply keeps up to meet demand and holds prices from rising too quickly, these identified areas are poised to lead the way in helping millennials realize their American Dream of becoming a homeowner.”
