Last week, we talked about the top 5 metro areas millennials are more likely to rent than buy in. According to this 2015 ADOBO report, only 32.1% of millennials in the U.S. were homeowners. As a whole, not many young adults own homes due to crippling college debt, costs of living, underpaid jobs, and apparently spending too much money on booze and avocado toast. However, there are some cities where the rate of millennial home owners are higher than the average rate of 32%. Many of these are in the South and Midwest since the standard of living is lower than cities such as Los Angeles, New York City, and more. That being said, today we’re going to discuss the top 5 metro areas millennials are more likely to buy in!
1. Ogden/Clearfield, UT
- Percentage of Millennial Homeowners: 51%
- Average down payment: $39,001
Ogden-Clearfield leads the list at being the #1 spot. As of 2015, 51% of millennials own a home in this area. Why is that? Well, this area is not as large as other metro areas, and it only takes about 11 years to save up for a down payment. More millennials in this area actually own than rent. The average millennial home value for Ogden/Clearfield is also less than $200,000. Pretty decent in terms of what young adults can afford today.
2. Grand Rapids/Wyoming, MI
- Percentage of Millennial Homeowners: 45.3%
- Average down payment: $29,517
This metro area is second on our list with 45.3% of millennials being home owners as of 2015. The average home value for the group in Grand Rapids is $147,584. Years ago, the foreclosure rate in Grand Rapids were actually quite high because of the dreadful housing crisis, but thankfully foreclosure rates have declined. The housing market conditions improved, and with a low down payment and cost of living, who wouldn’t want to buy a home in the Midwest?
3. Des Moines/West Des Moines, IA
- Percentage of Millennial Homeowners: 43.6%
- Average down payment: $31,478
In the Des Moines area, it would only take, on average, about 7.5 years to save up for a down payment. Compared to cities such as San Francisco and San Jose, owning a home in Des Moines is a lot more feasible and appealing since it will take over 25 years to save for a down payment living in the Golden State. The housing market remains pretty strong, with increased home values over the last couple of years. The majority of homes are still less than $200,000, which makes living in Des Moines extremely attractive.
4. McAllen/Edinburg/Mission, TX
- Percentage of Millennial Homeowners: 43.3%
- Average down payment: $19,419
This Texas metro area is definitely one a millennial can buy a home in because the average millennial home value is $97,096. The average time to save up for a down payment is about 8 years and the cost of living is low, so many do not need to rake in six figures to buy a home. This housing market caters to young adults since the population of millennials in the McAllen area is pretty high—the median age was 28.6 years old back in 2014. Because the price is right and this area is a lot smaller than other cities, young adults are able to own a home in this area, so many opt to buy rather than rent.
5. Minneapolis/St. Paul/Bloomington, MN
- Percentage of Millennial Homeowners: 42.4%
- Average down payment: 44,506
Out of all the metro areas listed, this one has the highest millennial home value of $222,528. However, over 42% of millennials own a home here, and 57.6% rent. It takes a little over 10 years to save up, but owning a home in the Minneapolis area is possible, and many young adults do it. The cost of living here is also cheaper than larger metropolitan areas, so many millennials are able to buy a house here. The Twin Cities market is booming—sellers got 100% of their asking price earlier this year in this area, and many baby boomers are retiring. So what does that mean? They’re selling their houses and millennials are snatching them up because they can actually afford it.