The National Association of Realtors Rates Austin a Top Purchase Market for Millennial Homebuyers
As anyone who lives in Austin knows, home prices just keep climbing. But according to the National Association of Realtors® (NAR), it’s still one of the best purchase markets for millennial homebuyers.
According to NAR, the rate of homeownership for adults under the age of 35 has been at the lowest level seen in decades, despite low mortgage rates, rising rental costs and low unemployment rates among the college-educated population. So in a recent study, NAR set out to identify the top 10 metro areas that would offer “a smoother path to homeownership.”
By analyzing employment gains, population trends, income levels and housing conditions in the largest 100 metropolitan statistical areas across the country, NAR was able to identify the best purchase markets for millennial homebuyers. The top factors included above-average share of current millennial residents and recent movers, favorable employment opportunities and relatively low qualifying incomes needed to purchase a home.
The study concluded that the top 10 best purchase markets for millennials are as follows: (cities are listed alphabetically):
• Austin, TX
• Charleston, SC
• Denver, CO
• Minneapolis, MN
• Ogden, UT
• Portland, OR
• Raleigh, NC
• Salt Lake City, UT
• Seattle, WA
• Washington, D.C.
In addition, NAR identified the following markets as having promising potential for millennial homebuyers:
• Boston, MA
• Dallas, TX
• Des Moines, IA
• Jacksonville, FL
• Nashville, TN
The study also found that Austin has the largest share of millennial residents (17.7 percent of the total population in 2014) and new millennial arrives (29.4 percent of all new arrivals in 2014) among metros. And in 2014, it had a median household income for new millennial arrivals of $51,810, a figure well above the “qualifying” income for millennials and other first-time homebuyers in the Austin area the same year.
As for why cities such as New York and parts of California didn’t make the list, Lawrence Yun, chief economist for the Realtors association, explained that during the early stages of the economic recovery, some of the largest metro areas were attractive to millennials for their strong job markets. However, their higher costs of living made it difficult to buy homes. Today, many of the more affordable, middle-tier cities have mostly recovered from the downturn, giving millennials moving to these cities enough earning power to purchase their first home.
As long as the supply of new and existing homes keeps pace with demand and prevents home prices from rising too fast, Austin is one of 10 cities set “to lead the way in helping millennials realize their American Dream of becoming a home owner,” Yun says.
Whether you’re a millennial or an empty nester, new to Austin or a longtime resident, Blairfield Realty wants to help you with your buying, selling or leasing needs. Give us a call today at 512.912.1910.
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