Affordability stands in the way for millennials as one of the main barriers to homeownership.
But not all housing markets are created equal, and many cities offer this generation plenty of options within a price range they can afford.
“Millennials who dream of owning a home will have better luck if they move inland to places like St. Louis, Columbus and Pittsburgh,” Redfin chief economist Daryl Fairweather said in a press release. “These cities used to have economies that relied heavily on manufacturing, and during the recession a lot of young people moved away in search of jobs.”
With home price growth currently plateauing, the time for millennial buyers to strike could be now before that changes.
“However, now these cities have more diverse economies based on education, healthcare and technology, and there are open jobs with salaries that are high relative to cost of living. But millennials may want to move as quickly as possible because even in most inland cities the share of homes affordable to the typical millennial is shrinking as housing prices go up,” Fairweather said.
From just below the Mason-Dixon Line to the gateway to the West, here’s a look at the 12 housing markets with the highest percentage of homes affordable to millennial purchasers with median incomes.
Redfin calculated the share of homes in each housing market that were affordable during 2018 to households making the median income for millennials in that metro area, assuming a 20% down payment, an interest rate of 4.64% and a monthly mortgage payment no more than 30% of gross income.