by Tanza Loudenback, Business Insider Mar. 1, 2017, 3:10 PM
Vermont comes in at #9
The narrative that millennials are eschewing all of the traditional habits of their parents is simply a myth, particularly when it comes to homebuying.
In fact, 65% of millennials still consider buying a home part of the American Dream, more than any other generation.`
But burdensome student loan debt, high rent prices, and low wages are affecting their ability to save up for a down payment, contributing to the lowest homeownership rate in the US in decades.
Still, these factors vary across cities and states, and there are some places where it's more attainable for first-time buyers to enter the market.
New data from Bankrate discovered how first-time homebuyers fare in all 50 US states considering five factors:
- Housing affordability: percentage of median household income for 25- to 44-year-olds that goes toward mortgage payments (using the median sale price)
- Entry-level job market: five-year average unemployment rate for 25- to 34-year-olds
- Market tightness: growth in housing stock from 2010 to 2015 and the percentage of homes for sale
- Credit availability: percentage of home loans rejected by credit lenders
- Millennial homeownership rate: percentage of homeowners under 35
Bankrate weighted each category equally to determine its ranking. States in the Midwest and the non-coastal West proved to be the most accommodating to first-time homebuyers, while California, New York, and Hawaii are the toughest states.
The metrics included below were all used to calculate Bankrate's ranking, with the exception of median home value, which was sourced independently from Zillow.