Millennial homebuyers are having a lot of trouble breaking into the housing market. Many young graduates are leaving college with a daunting amount of debt, which pushes back their homeownership plans by years, and sometimes indefinitely.
The worst markets for millennials, ironically, are those where they make up a higher share of the population. Cities like San Jose and Seattle are among the worst markets for this young generation, merely because they have become the most competitive markets for millennials.
- San Jose, Seattle, Salt Lake City, Minneapolis, and Omaha are the five worst housing markets for millennials
- In these competitive markets, Millennials make up a higher share of the population and earn incomes above the U.S. median
- Housing supply in these hyper-competitive markets is nearly three times lower than the rest of the country
Low supply and high demand are pushing prices higher everywhere, but the situation varies slightly city to city. No surprise, San Jose, California, and Seattle are the toughest housing markets for millennials, but some other surprising cities are high on a list compiled by Realtor.com. The real estate listing company ranked markets based on inventory availability and affordability.
Salt Lake City, Minneapolis and Omaha, Nebraska, rounded out the five toughest cities for millennials to become homeowners this spring. In all of the top five markets, millennials make up a higher share of the population and their incomes are higher than the U.S. median. They are thus more interested in buying homes, making those cities more competitive. In the toughest cities, supply is nearly three times lower than in the rest of the nation.
In Minneapolis, the median list price is about the same as the national average, around $280,000, but with 17 Fortune 500 companies attracting young workers, and a new, booming bicycle culture, it is drawing millennials faster than it can house them.
Salt Lake City has a much higher median home price than the national average, but millennials now make up more than 15 percent of the total population. They are drawn to a strong economy which boasts Delta Air Lines and eBay as well as a thriving outdoor culture.
View the original article at CNBC