The road to home ownership has been a struggle for many young adults, mostly due to financial obstacles. However, some millennials may find more luck in less expensive metro areas that also have steady job growth and lower qualifying incomes necessary to purchase a home.
NAR recently analyzed employment gains, population trends, income levels, and housing conditions among the 100 largest metro areas to pinpoint the best purchase markets for millennial home buyers.
After all, “even with potentially higher incomes, prospective millennial home buyers 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,” says Lawrence Yun, NAR’s chief economist. “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 home ownership.”
NAR identified these top 10 metros as having the best housing markets for millennials:
- Austin, Texas
- Charleston, S.C.
- Ogden, Utah
- Portland, Ore.
- Raleigh, N.C.
- Salt Lake City
- Washington, D.C.
Additional markets NAR identified for having promising potential for millennial home buyers include:
- Des Moines, Iowa
- Jacksonville, Fla.
“An overwhelming majority of young renters recently said they eventually want to buy a home,” Yun says. “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 home owner.”