A recent Washington Post article cited a National Association of Realtors study that found that Washington, D.C. is one of the most affordable of 100 major metropolitan areas studied for Millennials to buy a home. According to the Post, the association analyzed employment gains, population trends and housing conditions to compile its rankings.
In its findings, the report stated that:
“Since there was not a significant increase in home prices in the area in 2015, many Millennials can afford to buy a home. In 2014, among the 100 largest metro areas, Washington, DC was ranked 6th for highest median household income of Millennial movers.
“Thus, the median household income of the Millennials who moved recently was much higher [than the national median ($46,200).] As a result, the homeownership rate for the Millennials who moved recently was higher than the average of the 100 largest metro areas. More than one in-five Millennials who moved in 2014 owned a house (21%).”
Other cities that ranked in the top ten include (listed alphabetically) Austin, Texas; Charleston, S.C.; Denver, CO; Minneapolis, Minn; Ogden, Utah; Portland, Ore.; Raleigh, NC; Salt Lake City, Utah; and Seattle, Washington. Renting in D.C. is prohibitively expensive, yet homeownership rates among Millennials (born between 1982 and 2000) remain at historic lows. This is somewhat perplexing considering the long timeframe that interest rates have been at historic lows as well.