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Home ownership has long been a fundamental part of the American Dream and a milestone of adulthood. Even more, buying a home has historically been a pathway to the middle class for a number of Americans with many counting their primary residence as their most valuable asset. Stagnant wages, student debt, and rising home prices have made the prospect of home ownership distant for many young Americans, however. Indeed, millennials are increasingly becoming a generation of renters— especially in big cities where rents are skyrocketing with no signs of slowing down. Still, it’s a big country, and there are plenty of places around the United States where people under 30 can afford to buy their first homes.
The National Association of Realtors conducted an analysis of employment gains, population trends, income levels and housing conditions in the largest 100 metropolitan areas in the United States. It looked at the median household income, qualifying income for first-time homebuyers, and another of other factors to determine which cities are best for millennial homebuyers. The NAR found that these 10 cities are great investments:
Charleston, South Carolina
Share of Millennials to the Total Population: 15.8%
Share of Millennial Movers to Movers of any age: 24.5%
Employment Growth: 2.6%
Median Household Income for Millennial Movers: $47,903
Qualifying Income for First-Time Homebuyers: $41,369
Homeownership Rate of Millennial Movers: 21.7%
Change of Homeownership Rate for Millennial Movers: -1.4%
Denver, Colorado
Share of Millennials to the Total Population: 16.1%
Share of Millennial Movers to Movers of any age: 27.7%
Employment Growth: 3.2%
Median Household Income for Millennial Movers: $50,923
Qualifying Income for First-Time Homebuyers: $56,234
Homeownership Rate of Millennial Movers: 21.6%
Change of Homeownership Rate for Millennial Movers: -1.7%
Minneapolis, Minnesota
Share of Millennials to the Total Population: 15.0%
Share of Millennial Movers to Movers of any age: 27.3%
Employment Growth: 1.9%
Median Household Income for Millennial Movers: $55,066
Qualifying Income for First-Time Homebuyers: $38,087
Homeownership Rate of Millennial Movers: 28.7%
Change of Homeownership Rate for Millennial Movers: 2.5%
Ogden, Utah
Share of Millennials to the Total Population: 14.7%
Share of Millennial Movers to Movers of any age: 24.6%
Employment Growth: 6.0%
Median Household Income for Millennial Movers: $54,608
Qualifying Income for First-Time Homebuyers: $29,005
Homeownership Rate of Millennial Movers: 40.2%
Change of Homeownership Rate for Millennial Movers: 9.9%
Portland, Oregon
Share of Millennials to the Total Population: 15.0%
Share of Millennial Movers to Movers of any age: 26.7%
Employment Growth: 3.2%
Median Household Income for Millennial Movers: $44,792
Qualifying Income for First-Time Homebuyers: $51,847
Homeownership Rate of Millennial Movers: 17.1%
Change of Homeownership Rate for Millennial Movers: 3.9%
Raleigh, North Carolina
Share of Millennials to the Total Population: 14.1%
Share of Millennial Movers to Movers of any age: 25.7%
Employment Growth: 4.8%
Median Household Income for Millennial Movers: $49,892
Qualifying Income for First-Time Homebuyers: $37,815
Homeownership Rate of Millennial Movers: 28.4%
Change of Homeownership Rate for Millennial Movers: 0.6%
Austin, Texas
Share of Millennials to the Total Population: 17.7%
Share of Millennial Movers to Movers of any age: 29.4%
Employment Growth: 4.9%
Median Household Income for Millennial Movers: $51,810
Qualifying Income for First-Time Homebuyers: $43,635
Homeownership Rate of Millennial Movers: 19.4%
Change of Homeownership Rate for Millennial Movers: 1.2%
Salt Like City, Utah
Share of Millennials to the Total Population: 16.6%
Share of Millennial Movers to Movers of any age: 27.2%
Employment Growth: 2.7%
Median Household Income for Millennial Movers: $51,930
Qualifying Income for First-Time Homebuyers: $43,345
Homeownership Rate of Millennial Movers: 24.0%
Change of Homeownership Rate for Millennial Movers: -4.5%
Seattle, Washington
Share of Millennials to the Total Population: 16.2%
Share of Millennial Movers to Movers of any age: 29.0%
Employment Growth: 3.3%
Median Household Income for Millennial Movers: $64,294
Qualifying Income for First-Time Homebuyers: $64,645
Homeownership Rate of Millennial Movers: 19.8%
Change of Homeownership Rate for Millennial Movers: 4.4%
Washington, D.C.
Share of Millennials to the Total Population: 15.7%
Share of Millennial Movers to Movers of any age: 28.3%
Employment Growth: 3.3%
Median Household Income for Millennial Movers: $69,874
Qualifying Income for First-Time Homebuyers: $69,576
Homeownership Rate of Millennial Movers: 20.8%
Change of Homeownership Rate for Millennial Movers: 2.3%