Millennials are being creative and working around all the challenges in the US housing market – they are active in areas you would not expect. Keep reading.
The news about Millennials not being able to buy homes in most cities has overwhelmed the main stream press. Based on their average income they are not able to afford 70 percent of the homes in some markets but they are focusing on the 30 percent, the cheaper alternatives. When we cover the key cities, Millennials can afford 10% of the homes in Dallas, 13% in Boston and only 2% in San Diego.
So the high home prices and the strong demand allow the Millennials limited options in many cities, and that could mean a boom for local economies and home values in those local markets. One example is Madison, Wisconsin, a nw mecca for Millennials, according to the National Association of Realtors, which ranked Millennial housing markets based on both their high share of current young residents and this cohort moving in. The growth is also partly due to the out of state students who are going to school at University of Wisconsin. Google recently announced it was expanding its Madison offices.
University of Wisconsin is in an area in which the tech sector that is growing rapidly, which of course is attracting newcomers. This university is highly ranked in Forbes and other ranking systems and the area around the university has attracted tech start-ups and eager investors. Millennials have started to move to this area.
Other metro areas that are seeing Millennials increase are Olahoma City, Grand Rapids, Michigan, Omaha Nebraska, Durham, North Carolina, El Paso, Texas and Salt Lake City, Utah. Also, Seattle and Denver are seeing new buyers move in.