While 93% of millennial renters say they want to buy a home someday, the places they dream to live are difficult to afford, according to a new report from Trulia.
“Call it the “millennial mismatch.” Millennials can afford markets where they don’t live, but they can’t afford many of the markets where they do live. Many millennials who hope to buy someday will be priced out of the market where they live now,” said Jed Kolko, chief economist with Trulia said. “They’ll face a tough choice: Do they keep renting or move to a cheaper market?”
Trulia noted that in metros with higher millennial shares, homeownership tends to be less affordable for this group.
For instance, in Austin, Honolulu, New York and San Diego, 20–34 year-olds account for at least 23.5% of the population, putting those metros in the top 10 for millennial share.
However, millennials struggle to afford these areas. Fewer than 30% of homes for sale in those markets are within reach of the typical millennial household.
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Source Trulia
