The homeownership rate among Americans under 35 years old has dropped to 36 percent from 42 percent less than a decade ago, but the National Association of Realtors says there are metropolitan areas where millennial homeownership is likely to grow in coming years.
Washington, D.C., gets an honorable mention on the list.
The D.C.-based association looked for metros that have a large young adult population, solid job growth rates and salaries, and still relatively affordable home prices. Seven of the 10 metros it singled out for millennial homeownership growth are in the West and Midwest.
“NAR research finds that there are metro areas millennials are moving to where job growth is strong and homeownership in more attainable,” said NAR chief economist Lawrence Yun. “These markets are well-positioned to soon experience a rise in first-time buyers as the economy improves.”
The NAR’s study also looked for cities that had strong migration patterns of young adults and inventory availability.
The NAR’s 10 Best Cities for Aspiring Millennial Homebuyers:
- Des Moines, Iowa
- Grand Rapids, Michigan
- New Orleans
- Ogden, Utah
- Salt Lake City
Other markets the NAR says have strong potential for attracting millennial homebuyers:
- Madison, Wisconsin
- Nashville, Tennessee
- Omaha, Nebraska
- Raleigh, North Carolina
- Washington, D.C.
“Millennials will eventually settle down, trade their roommates for spouses and want to raise a family,” said NAR president Steve Brown.
© 2014 American City Business Journals, Inc.