Millennials and home affordability

by Anna Sobrevinas01 Mar 2017
Cities in states like California and New York are appealing to millennials – but a nightmare for first-time homebuyers, according to a Bankrate report.

Booming markets can be a challenge for first-time homebuyers when it comes to affordability, said Rolf Pendall, co-director of the Metropolitan Housing and Communities Policy Center at the Urban Institute.

"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," Pendall said.

Iowa, Ohio and West Virginia are the most wallet-friendly states, while California, Hawaii and Oregon – not so much.

When it comes to millennials and home-buying, Iowa, Minnesota and Utah are the best choices, Bankrate found – while California, Hawaii and New York prices will make millennials wince.

"It is the youngest adults who are taking the biggest hit downward in ownership rate," said Lawrence Yun, chief economist at the National Association of Realtors.

Related stories:
Older millennials, Gen Xers more likely to buy homes – survey
Morning Briefing: Millennial women most likely to pick FHA loan



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