this Map Shows Where Millennials Are Buying Houses (And For How Much)

this Map Shows Where Millennials Are Buying Houses (And For How Much)

Tyler Durden's picture

Millennial homeownership rates are essential to understanding the housing market because they facilitate additional home sales for other people.

How does this work? As HowMuch.net explains, suppose you make an offer on a house. The current owner is also probably on the market, and he or she likely has a contingent offer on another house. This sets off a chain reaction throughout the economy. Millennial homeownership rates are therefore an easy way to judge the economic vitality of any given area.

That’s why HowMuch.net created this new map…

Source: HowMuch.net

Our viz takes millennial homeownership data from Abodo and maps it by metro area across the country. Abodo adopted the data from the U.S. Census Bureau, which regularly collects a variety of information about the population, including the age of homeowners, the estimated value of their homes, and how long it would take to accumulate a 20% down payment. Our numbers are from 2015. We then overlaid this information across metro areas with bubbles representing the portion of millennial homeowners in each market: the bigger the bubble, the more millennial homeowners there are. We also color-coded each bubble to represent the median value of their homes—dark red circles mean the homes are worth over $500k, and dark blue means under $200k. This gives you a quick snapshot of the overall economy and the housing market.

The first trend you can see on the map is a clustering of red circles on both the West Coast and along the Northeast.

The most expensive city in the country for millennials is San Jose, CA, where the average millennial buys a home worth $737,077.Seattle, WA in the Northwest is also relatively expensive at $342,769. These are population-dense areas with booming tech sectors. At the other end of the spectrum, you can see clusters of blue bubbles across the Midwest in old manufacturing cities like Detroit, MI ($148,404) and Cleveland, OH ($160,251). Memphis, TN is the cheapest place for millennials at $142,795. Southern states like Texas and Florida are also relatively affordable thanks in large part to their suburban sprawl, which Zillow predicts will expand next year.

It’s no surprise that homes are more expensive in California (think Silicon Valley) than the industrial heartland, but consider how homeownership rates change based on affordability. The red bubbles all tend to be smaller than the blue bubbles. This means that as homes get more expensive, millennials become increasingly unable to afford them. It’s not like there’s a surplus of ultra-rich millennials buying up all the houses in California and New York. Millennials are just as sensitive to high prices as everyone else.

Let’s break the map down into a top ten list of the urban areas with the highest rates of millennial homeownership, combined with the average price of their home. A full 42% of the millennials living in Minneapolis-St. Paul, MN own their own home, the highest rate in the country.

1. Minneapolis-St. Paul-Bloomington, MN-WI: 42.4% and $222,528

2. St. Louis, MO-IL: 40.2% and $167,791

3. Detroit-Warren-Dearborn, MI: 40.2% and $148,404

4. Louisville/Jefferson County, KY-IN: 38.5% and $158,974

5. Pittsburgh, PA: 37.5% and $152,731

6. Indianapolis-Carmel-Anderson, IN: 37.4% and $161,856

7. Kansas City, MO-KS: 37.1% and $170,254

8. Nashville-Davidson–Murfreesboro-Franklin, TN: 37.0% and $213,090

9. Oklahoma City, OK: 36.7% and $172,485

10. Baltimore-Columbia-Towson, MD: 36.3% and $272,805

Buying a home is often the biggest financial decision anybody makes, and that’s especially true for young people. And there’s a lot to consider when buying your first home, but one thing other than affordability to keep in mind is how many other millennials are in the same situation. If you’re a millennial looking to buy a home, and you want to live next to other young people, you just might have to move to the Midwest.

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Cardinal Fang's picture

Millenials don’t buy a house. They ‘experience’ home ownership.

Then they get bummed because they don’t know how to do laundry, grocery shop, pay bills, cut grass, paint a room, fix a leaky faucet or running toilet, um, did I forget anything?

Sorry to harsh your mellow.

serotonindumptruck's picture

Perhaps the rich Mommies and Daddies are buying the house for their precious Millenial spawn, and all mortgage payments and utility bills are covered by Mommy and Daddy.

No doubt Mommy and Daddy are employed in State or Federal government positions where they are both receiving obscene six figure salaries for sitting on their asses all day long.

Cynicles II's picture

Top ten US shitholes:

” 1. Minneapolis-St. Paul-Bloomington, MN-WI: 42.4% and $222,528

2. St. Louis, MO-IL: 40.2% and $167,791

3. Detroit-Warren-Dearborn, MI: 40.2% and $148,404

4. Louisville/Jefferson County, KY-IN: 38.5% and $158,974

5. Pittsburgh, PA: 37.5% and $152,731

6. Indianapolis-Carmel-Anderson, IN: 37.4% and $161,856

7. Kansas City, MO-KS: 37.1% and $170,254

8. Nashville-Davidson–Murfreesboro-Franklin, TN: 37.0% and $213,090

9. Oklahoma City, OK: 36.7% and $172,485

10. Baltimore-Columbia-Towson, MD: 36.3% and $272,805 “

swmnguy's picture

I’m happy to consider Minneapolis a shithole.  As US cities go, it’s got a high general level of education, good jobs, high wages; it’s clean, stuff works, decent to good public schools, low crime, very safe if you’re not involved in the drug trade or domestic violence or alcoholism, easy to get around, short commutes, lots of nonstop flights, nice airport, pretty low gas prices, reasonably priced housing and food.  Lots of blonde, non-confrontational women.  Again, as large citiies go.

Don’t move here. It’s a shithole and you’d hate it.

Billy the Poet's picture

Who can turn the world on with her smile….?

ZIRPdiggler's picture

You’ve obviously never been to the twin cities. I am from Chi and lemme tell ya……its the Ritz-Carlton to Chicago’s ‘hookers-n-blow-Inn-by-the-hour’.  I would live in all of these cities (except number 5 and number 10 for obvious reasons).  I lived OKC, St Louis, all of these are affordable.

DipshitMiddleClassWhiteKid's picture

heh

 

most of the people who are buying houses are either from well-to-do families or their sons got into some union/govt gig where they get paid alot to do nothing.

 

 

70% of millenial men are single and unemployed/underemployed

 

let that sink in for a second.

 

go on seekingarrangment and make a profile. see how many young girls are messaging you in a few hours.

 

The apocolypse is now.

 

 

ZeroLounger's picture

Two different sets of millennial acquaintances of ours are moving out of mom’s and getting their own places (one is moving closeby to mom-just in case). I was surprised.

PitBullsRule's picture

Is this an article telling us that young people can’t afford expensive houses?

Next you’ll be telling us that old people can’t eat spicy foods.

 

Posted but not written by Louis Sheehan

About masterkan

Louis Sheehan
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