The NAR recently released a study showing the best markets for Millennial home buyers. Austin, Dallas and Denver top the list of cities deemed best for the newest generation of buyers. With the exception of Washington DC, none of the top cities are located on the east coast. The combination of robust job markets and relatively affordable housing prices in these cities is leading to a resurgence in home purchases by Millennials, after they fell from a peak of 43% home ownership in 2005, to the current rate of 36%.
According to the NAR, “Limited job prospects, student debt and flat wage growth have combined with tight credit conditions and low inventory to price Millennials out of some of the top cities such as New York and San Francisco,” he said. “However, NAR research finds that there are other metro areas Millennials are moving to where job growth is strong and homeownership is more attainable. These markets are well-positioned to soon experience a rise in first-time buyers as the economy improves.”
Austin, at the top of the list, had a 4.2% job growth rate last year, and currently has an unemployment rate of only 4.5%, according to the study.