Hope for Millennials? The 15 best states for today’s young home buyers
There’s been a lot of talk about Millennial home buyers as of late – particularly how many just can’t drum up enough funds to enter the market. But according to a new list, there are 15 states where home buying isn’t just possible for Millennials – it might even be easy.Verify your new rate (Feb 25th, 2018)
Why West Virginia?
According to USA Today, the just-released ranking takes into account housing cost data from Zillow, the national median income for Millennials (just under $61K) and the length of time it would take those Millennials to save a 20 percent down payment.
The clear-cut winner in the race? That’d be West Virginia.
In West Virginia, Millennials need just 2.5 years to save for a 20 percent down payment – the lowest of any state in the nation. Homes in the state average around $150K, and Millennial buyers can expect a monthly mortgage payment of just $693.
There’s another advantage, too.
“What’s great for homebuyers is West Virginia's rising home values,” the list reads. “After stagnating around $90,000 for years, since 2014 the median home value has been on a consistent increase, first exceeding $100,000 in September 2016.”
The rest of the affordables
Ohio came in second, with a median list price of $154,000 and a monthly mortgage payment of $704. It also takes Millennials about 2.5 years to save for a down payment.
Mississippi, Missouri, Michigan, Kansas, Kentucky, Iowa, Indiana and Arkansas all made the top 10, with median prices below $200,000 and monthly payments under $800. Oklahoma, Pennsylvania, Wisconsin, Alabama and Alaska rounded out the list’s top-ranked states.
|State & Rank||Years to Save Downpayment||Median Home List Price|
|#1 - West Virginia||2.5||$150,000|
|#2 - Ohio||2.5||$154,000|
|#3 - Arkansas||2.7||$164,900|
|#4 - Indiana||2.7||$167,000|
|#5 - Iowa||2.8||$169,000|
|#6 - Kentucky||2.8||$169,900|
|#7 - Kansas||2.8||$169,900|
|#8 - Michigan||2.8||$169,900|
|#9 - Missouri||2.8||$169,900|
|#10 - Mississippi||2.9||$175,000|
Worse for the wear
According to the list, Hawaii is the worst state for today’s Millennial home buyers. Homes average just under $600,000, and it takes buyers nearly 10 years to save a 20 percent down payment. The monthly mortgage payment a Millennial can expect? That rings in at $2,584.
Washington D.C., California, Massachusetts, Colorado, Oregon, Washington and New York also rank among the worst spots for Millennials. The average D.C. mortgage payment is just under $2,378.
20 percent is not necessary
If you've got your heart set on a more expensive market, do not despair. There are many programs requiring as little as 3 percent down. Even zero if you qualify for VA financing or buy in a rural area.
And many states, counties and cities offer some form of down payment assistance to eligible buyers. So don't move to a state you hate just because of the down payment requirement.
Get today’s rates
Are you a Millennial looking to buy a home? Choose your location carefully, and make sure to shop around to get the best possible mortgage rate. See what rates you qualify for today.
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