Millennials are set to drive the housing market in America. However, there is one problem with millennial home ownership that no one is talking about. They can’t afford it and aren’t saving for it.
According to a report by ApartmentList.com, millennials in fact DO want to own a home. However, most don’t plan to do it anytime soon.
The report survey 24,000 millennials who are currently renting their home or apartment. The report found that 80% want to own a home or condo. However, the biggest obstacle is paying for it.
The report also found that the current rate of savings for millennials is disturbingly low. Assuming their rate of savings stays the same, it may take up to 20 years in some cities to afford a 20% down payment. This number varies based on city, but is just another example of how the real cost of living changes in different areas.
For example, a millennial may need to save for 6 years in order to afford the down payment on a home in Miami, Florida. That same millennial may need 20+ years to buy a home in Los Angeles, California.
For this reason, City vs City calculates your cost of living based on the city you actually live in; not medians and averages. Our app factors in costs, savings, income, and expenses. We even calculate by zip code to account for all major state and local taxes.
The Future of Millennial Home Ownership
Not surprisingly, many millennials are opting to move out of large cities. Midwestern and southern states are presenting a more affordable cost of living and are able to attract younger workers. Some states are even offering incentives to move there!
Whether you’re a millennial looking to pursue the American dream or just someone who finds the cost of living in your city to be too insufferable; City vs City can help. Download the City vs City app today and see what your cost of living COULD be in a different city!