Members of the millennial generation, especially first-time buyers, are already struggling to purchase a home due to student loan debt, trouble saving for a down payment and tight inventory—factors cited in the National Association of REALTORS® (NAR) 2017 Profile of Home Buyers and Sellers. According to GOBankingRates, slow wage growth and low unemployment rates across the country are also impacting the homeownership rate.
There are, however, specific locations that may be easier to purchase in because of low median list prices and low monthly mortgage payments. GOBankingRates rated the most and least expensive states across the U.S. to help millennial buyers find affordable housing. The report uses a median income of $60,932 to represent ages 25-34, and the following rankings are based on a 20 percent down payment and a 30-year, fixed rate mortgage.
Top 5 Most Affordable States
- West Virginia
Median Lis price: $154,900
Estimated time to save for a down payment: 2.5 years
Monthly mortgage payment: $693
- Ohio
Median list price: $150,000
Estimated time to save for a down payment: 2.5 years
Monthly mortgage payment: $704
- Arkansas
Median list price: $150,000
Estimated time to save for a down payment: 2.5 years
Monthly mortgage payment: $757
- Indiana
Median list price: $167,000
Estimated time to save for a down payment: 2.7 years
Monthly mortgage payment: $757
- Iowa
Median list price: $169,000
Estimated time to save for a down payment: 2.8 years
Monthly mortgage payment: $766
Top 5 Most Expensive States
- Hawaii
Median list price: $599,000
Estimated time to save for a down payment: 9.8 years
Monthly mortgage payment: $2,584
- California
Median list price: $499,950
Estimated time to save for a down payment: 8.2 years
Monthly mortgage payment: $2,168
- Massachusetts
Median list price: $419,900
Estimated time to save for a down payment: 6.9 years
Monthly mortgage payment: $1,833
- Colorado
Median list price: $408,068
Estimated time to save for a down payment: 6.7 years
Monthly mortgage payment: $1,780
- Oregon
Median list price: $352,000
Estimated time to save for a down payment: 5.8 years
Monthly mortgage payment: $1,551
For more details, read the entire GOBankingRates report.
Liz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com.
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