You Won't Believe the New Magnets for Home Buyers, Last fall,
Kit Kester, 32, and his wife decided it was time to make the giant leap into first-time homeownership. But they didn't consider relocating to job-packed San Francisco, breakfast-taco-loving Austin, TX, mustache-obsessed Williamsburg, Brooklyn, or any of the other infamous millennial hotspots across the United States.
Instead they centered their search on their hometown of Lincoln, NE. By October, they had purchased a three-bedroom, split-level home in the suburban neighborhood of Highlands for $180,000.
“We got tired of paying rent and throwing money away,' says the maintenance supervisor and father of a young child. 'And we really liked the idea of having a home for my daughter to grow up in.”
Millennials bought 36% of homes last year, the highest share of any generational group, according to the National Association of Realtors®. Of that 36%, 65% went to first-time home buyers. But this vast army of buyers faces some unique challenges in their transition from renters to owners, including crushing debt loads and one of the tightest and most competitive housing markets in history. They may be buying homes in big numbers, but they can't afford to do so in the nation's largest, most expensive cities.
Instead, many younger buyers are opting for more affordable—and unexpected—parts of the country. But where? The data team decided to find out where younger Americans make up the largest percentage of purchasers, by looking at who is getting mortgages and where they're getting 'em.
Now let's take a tour of the new millennial meccas!
4. Provo, UT
Median home list price: $376,700
Percentage of mortgages issued to millennials: 56.5%
Most of the places on our list are all about reasonably priced housing. The exception is Provo, where home prices are almost $100,000 more than the national median.
But high prices aren’t locking younger buyers out of the market here, because wages are also good. The city is home to Brigham Young University, Ancestry.com, and plenty of start-ups where computer coders can earn a fine living. That earned the city a spot on our our ranking of top metros for the middle class.
Provo homes cost a bit less than those in nearby Salt Lake City, at a median nearly $394,000. The larger city, about 45 minutes north, was ranked as one of the toughest housing markets for millennials.
Many first-time buyers are moving to more family-friendly, suburban communities like Cedar Hills, around 25 minutes from downtown Provo, where they can snag larger homes. Just look at this 3,400 square-foot, five-bedroom Rambler-style home, priced at $479,000.
And all the 1990s kids who grew up watching 'Jurassic Park' over and over are sure to dig (get it?) the dino fossils at the Brigham Young University Museum of Paleontology.
What we found flies in the face of conventional wisdom. 'At the end of the day, it comes down to what they can afford,' a New York-based company that helps people reach their financial goals. 'They might have started their careers in very expensive metros areas like [Washington] DC or San Francisco. But as they age, they often want to settle down and look for a home in a reasonably priced location.'
We used Pew Research Center's definition of millennials: those born between 1981 and 1996—who are now anywhere from 22 to the ripe old age of 36.Then we calculated the share of buyers within that age group who bought homes over the past 12 months in the 200 largest housing markets.
Ready to Buy or Sell? We have a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership #NewConstruction #UtahRealEstate
Source: Realtor.com
Instead they centered their search on their hometown of Lincoln, NE. By October, they had purchased a three-bedroom, split-level home in the suburban neighborhood of Highlands for $180,000.
“We got tired of paying rent and throwing money away,' says the maintenance supervisor and father of a young child. 'And we really liked the idea of having a home for my daughter to grow up in.”
Millennials bought 36% of homes last year, the highest share of any generational group, according to the National Association of Realtors®. Of that 36%, 65% went to first-time home buyers. But this vast army of buyers faces some unique challenges in their transition from renters to owners, including crushing debt loads and one of the tightest and most competitive housing markets in history. They may be buying homes in big numbers, but they can't afford to do so in the nation's largest, most expensive cities.
Instead, many younger buyers are opting for more affordable—and unexpected—parts of the country. But where? The data team decided to find out where younger Americans make up the largest percentage of purchasers, by looking at who is getting mortgages and where they're getting 'em.
Now let's take a tour of the new millennial meccas!
4. Provo, UT
Percentage of mortgages issued to millennials: 56.5%
Most of the places on our list are all about reasonably priced housing. The exception is Provo, where home prices are almost $100,000 more than the national median.
But high prices aren’t locking younger buyers out of the market here, because wages are also good. The city is home to Brigham Young University, Ancestry.com, and plenty of start-ups where computer coders can earn a fine living. That earned the city a spot on our our ranking of top metros for the middle class.
Provo homes cost a bit less than those in nearby Salt Lake City, at a median nearly $394,000. The larger city, about 45 minutes north, was ranked as one of the toughest housing markets for millennials.
Many first-time buyers are moving to more family-friendly, suburban communities like Cedar Hills, around 25 minutes from downtown Provo, where they can snag larger homes. Just look at this 3,400 square-foot, five-bedroom Rambler-style home, priced at $479,000.
And all the 1990s kids who grew up watching 'Jurassic Park' over and over are sure to dig (get it?) the dino fossils at the Brigham Young University Museum of Paleontology.
What we found flies in the face of conventional wisdom. 'At the end of the day, it comes down to what they can afford,' a New York-based company that helps people reach their financial goals. 'They might have started their careers in very expensive metros areas like [Washington] DC or San Francisco. But as they age, they often want to settle down and look for a home in a reasonably priced location.'
We used Pew Research Center's definition of millennials: those born between 1981 and 1996—who are now anywhere from 22 to the ripe old age of 36.Then we calculated the share of buyers within that age group who bought homes over the past 12 months in the 200 largest housing markets.
Ready to Buy or Sell? We have a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today. #RealEstateForSale #Homeownership #NewConstruction #UtahRealEstate
Source: Realtor.com
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