Today, millennial’s make up the largest share of housing market home buyers in the U.S. This generation also seems to gravitate towards certain metro areas for buying a house.
As mentioned in an article by New Western, “More than half of millennial’s surveyed by LendingTree worry about qualifying for a mortgage. That said, the same survey reports that 66% are MORE likely to buy a home due to the COVID crisis. NAR president Vince Malta echoes this sentiment: “As states and cities begin to reopen, millennial’s will play a significant role in the housing market’s recovery.”
Out of 100 of the largest metro areas in the U.S., NAR recently identified the top 10 housing markets post pandemic for millennial’s. The NAA factored in things like housing affordability, local job market conditions before the COVID outbreak, and the percent of millennial’s already living in the area.
The following markets made NAR’s top 10 list for millennial’s (listed in alphabetical order):
- Austin-Round Rock, Texas
- Dallas-Fort Worth-Arlington, Texas
- Des Moines-West Des Moines, Iowa
- Durham-Chapel Hill-Raleigh, N.C.
- Houston-The Woodlands, Texas
- Indianapolis-Carmel-Anderson, Ind.
- Omaha, Nebraska/Council Bluffs, Iowa
- Phoenix-Mesa-Scottsdale, Ariz.
- Portland, Oregon/Vancouver, Wash.
- Salt Lake City, Utah
NAR Chief Economist Lawrence Yun predicts that multiple offers might become common in these markets, where 3/10 residents are millennial’s. Housing affordability also tends to be better than national averages in these markets as well.
It Comes Down To Affordability:
“Nationally, the typical household can afford to buy 40% of the homes listed for sale. That is up from 34% a year earlier”, according to NAR and realtor.com®’s REALTORS® Affordability Distribution Score, which measures the affordability of homes currently for sale at different income levels. In fact, “A household earning $100,000 in Dallas, for example, can afford to purchase 56% of homes listed for sale. A year ago, that percentage stood at 45%.” – Realtor Magazine
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