Millennials Living in Large Metro Areas Would need to save up for a Decade to Afford a home
According to a survey from ApartmentList.com, a website that lists apartments for rent, millennials that live in many of the nation’s large metropolitan areas will need almost a decade to save enough money to pay a 20 percent down payment on a condominium. A growing number of millennials are delaying buying a home until later in life, many of which would like to own a home or condo but can’t afford it. Many millennials, which make up the largest generation in the United States, are being hindered from owning a home or condo because of things such as high levels of student debt, stagnant career opportunities, and the fact that there are not enough affordable entry-level homes. Marty Rodriguez, owner of the Century 21 Marty Rodriguez in Glendora, states:
Some just don’t want the responsibility of homeownership. It’s really a combination of home prices being high and people not wanting the responsibility of a house. They’re OK with renting. Meanwhile, home prices are going up.
Unfortunately, many large metro areas also have high rental costs because of a high demand for housing. Southern California has the highest rental costs in California and Los Angeles happens to be the most expensive city for renters in California. The median rental price in Los Angeles for a two-bedroom unit was $2,750 in April, while a one-bedroom unit was $1,930. Irvine is the second most expensive city for renters in California, where the median rental price for a two-bedroom unit was $2,650 in April and $1,970 for a one-bedroom unit.
With the way that things are going in terms of the slow rate at which California is adding homes and apartments, millennials will continue to have a harder time affording a home or condo and they are going to delay buying a home or condo much later in life.