What Holds Back Millennial Home Buyers in Houston?
The Millennial generation, representing young adults aged 18 to 35, has been challenged by home buying conditions in Houston and around the country. A recent study by ABODO, an apartment listing website, ranked the ratio of Millennial home ownership across major U.S. cities. It found that just 29.1% of Houston’s Millennial residents were homeowners, compared to a national average of 32.1%.
Other Texas real estate markets have similar findings. The Dallas Morning News shows 28.7% of Dallas Millennials owning their own homes. San Antonio is in the mix at 29.2%, and Austin falls behind the pack at 26.5%.
The Texas city most affordable for Millennials, according to the study, is Beaumont, with 42.8% of Millennials owning their own home. Brownsville follows a distant second with Millennial home ownership at 33.2%, while El Paso comes in at 31.4%.
ABODO cites student loan debt, rising home prices, slow wage growth and down payment difficulties as barriers to Millennial home ownership. Yet this is an incomplete picture. Houston, for example, has been enjoying growth in its Millennial population, thanks to a variety of job opportunities and an abundance of culture and recreation. At the same time, Houston home prices, while rising, are relatively moderate compared to other areas in the country and within Texas. Why, then, is our ratio of Millennial home ownership below the national average?
The simple answer could be a lack of entry-level housing. Since the Great Recession, a considerable amount of single-family home inventory has fallen into the hands of investors, who either rent out the homes, or perform repairs and “flip” them at higher price points. In order to find home inventory, Millennial buyers have had to look higher up the price ladder, which means a larger down payment, and a longer period to prepare financially. This situation is playing out in metropolitan areas around the country. And because home builders do not find it economically feasible to construct new homes at entry-level prices, there isn’t a quick solution to the problem.
Houston home buyers may need to prepare for home ownership a little longer, but the rewards are worth it! Let us introduce you to the home buying process, and help you find your ideal Houston home! We can also refer you to lenders, home inspectors and other professionals to make your home buying experience a smooth one. Contact us today for your personal real estate consultation!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079