From Realtor.com – Millennial Magnets: The Top 10 Cities Where Young People Want to Be. Houston #5 In The Nation

Millennial Magnets: The Top 10 Cities Where Young People Want to Be. Houston comes in at Number 5

By Yuqing Pan | Mar 27, 2017 – Realtor.com

What do millennials want, anyway? Marketing execs all over the country have been tripping over themselves for years to find the answer. After all, as America’s largest and youngest adult generation, millennials have an insane amount of collective purchasing power, the clout to move markets according to their whims—and the ability to do so for decades to come.

As a group, they’re also somewhat elusive. Are they aimless or driven? Apathetic or activist? IPhone or Android? Taco Bell or Chipotle?

Well, here’s something we do know: In ever-increasing numbers, they’re home buyers. In fact, they’re the biggest group of ’em in the nation. Sure, they’re devotees of the borrowers’ economy—eagerly sharing bikes, music, rides, vacation places, you name it—but like most generations before them, they’re hungry for home ownership. Buyers under 36 now make up the biggest chunk of Americans signing on the line that is dotted: 34% of all home buyers, according to the National Association of Realtors®. And they make up 64% of first-time home buyers (even though they only account for 13% of the population).

So if millennials are checking out your hometown, you’d best pay attention.

“There are some very specific things you see millennials looking for in a community right now,” says Jason Dorsey, chief strategy officer for the Center for Generational Kinetics, a marketing firm in Austin, TX. On the list of must-haves: supershort commutes, and amenities like parks, cultural centers, and restaurants. And yeah, maybe even some really fun stuff to do on a Thursday night. That’s because many of these 25- to 34-year-olds are delaying marriage and even a serious career, and want to enjoy the single life, he says.

As Dorsey points out, they also face an UberXL load of unique financial challenges: “College debt, thinner credit history, less savings—and all at a time when home prices have gone up. For many millennials, it’s much harder to buy houses.” On their path to ownership, they’re very much on the prowl for a bargain.

So what are the places that pique millennials’ interest? The realtor.com economic data team analyzed the 60 largest U.S. cities and how much millennials were checking out listings in those areas, compared with the national average, from August 2016 to February 2017.

Ready? Let’s take a closer look at these millennial magnets.

1. Salt Lake City, UT

Median home price: $360,000

Percentage of income needed to buy a home*: 30%

Unemployment rate: 2.9%

2. Miami, FL

Median home price: $370,000

Percentage of income needed to buy a home: 49%

Unemployment rate: 5.1%

3. Orlando, FL

Median home price: $279,000

Percentage of income needed to buy a home: 34%

Unemployment rate: 4.4%

4. Seattle, WA

Median home price: $455,000

Percentage of income needed to buy a home: 36%

Unemployment rate: 4.2%

5. Houston, TX

Median home price: $310,000

Percentage of income needed to buy a home: 36%

Unemployment rate: 5.4%

Houston, TX

Good news for broke millennials: A paycheck in Houston stretches further than in other metros. Houston has the second-highest pay on our list, at $62,300, after adjusting for the cost of living, trailing only San Jose, according to Forbes. Plus, Texas is one of the only seven states with no income tax.

Granted, you may well find yourself fighting through Houston traffic, but several master-planned communities in the suburbs mix residential homes with businesses, so you may not even need to head downtown.

“Restaurants, bars, shops—it almost feels like an urban setting. It’s a very neat trend that’s going to take off,” says Cheri Fama, president of John Daugherty Realtors.

6. Los Angeles, CA

Median home price: $672,000

Percentage of income needed to buy a home: 64%

Unemployment rate: 4.7%

7. Buffalo, NY

Median home price: $158,000

Percentage of income needed to buy a home: 23%

Unemployment rate: 5.6%

8. Albany, NY

Median home price: $250,000

Percentage of income needed to buy a home: 27%

Unemployment rate: 4.5%

9. San Francisco, CA

Median home price: $849,000

Percentage of income needed to buy a home: 56%

Unemployment rate: 3.7%

10. San Jose, CA

Median home price: $950,000

Percentage of income needed to buy a home: 53%

Unemployment rate: 3.7%

* Percentage of income needed to buy a home is based on the median income of each metro.


Post a Comment