Another day, another article about what Millennials are — or are not — up to. With housing affordability looming as a constant concern, it comes as no surprise that Millennials find themselves profoundly affected. They’re feeling the pinch, even in Dallas where housing remains more within reach than in many areas of the country.
A recent report on Millennial home buying power by ABODO.com looks at the shrinking number of 18 to 35 year olds able to afford homes. It also analyzes where Millennials have the best chances of buying a home, and the kinds of homes they can afford.
“We know that Millennials are often labeled as the renter generation, but we wanted to uncover whether or not this statement is entirely accurate,” said ABODO’s senior communications manager, Sam Radbil. “To find out [if and where Millennials are buying], we analyzed U.S. Census data to uncover the cities with the highest percentage of Millennial owners.”
Dallas Passes with a B Minus
And how does Dallas fare? According to the report, we score what’s like at B minus. At best. Nationally, about 32 percent of Millennials own homes. Here, it’s a bit lower.
“In Dallas, specifically, our report shows that only 28.7 percent of Millennials own homes. These numbers in Dallas fall at the low end for homeownership by Millennials, when compared to the rest of the country,” Radbil said. “And when compared to cities of similar size — the largest cities in the country — Dallas ranks 32 out of 45 in terms of having the most Millennial homeowners.”
One particular and startling statistic from ABODO’s data stands out. “The average Millennial in Dallas would have to save for 10.4 years, in order to afford a down payment on a home.” Putting aside the criticism that the generation misspends its money, that’s am absurdly long time. Things look even worse for Millennials in Hawaii or California. They need to save for 20 years for a home.
But Millennials could do far worse than purchasing homes in Texas. “When it comes to homes owned by Millennials in Dallas, the average price of a Millennial-owned home is $200,805,” said Radbil. That’s nearly equal to the area average. That’s some good news.
Generation X Went There First
Before the challenges of student loans and a tight housing market, young adults accounted for a greater portion of homeowners. But Millennials might not actually be the first generation to all but turn their backs on homeownership. Turns out, Generation X started that trend. Eighteen to 35 year olds slowed their entry into the market as early as 2005, long before Millennials were buying avocado toast or even signing up for driver’s ed.
And there may be signs of hope sprouting. Millennials make up the largest share of recent new home purchases. Perhaps we’ll see Tim Gurner eating his own avocado-flavored words soon enough.