Millennials Desire Affordable Homeownership in the Suburbs
The idea that young adults value urban living and the flexibility of renting above all else is a misconception.
The Los Angeles Times says that affordability is the main driver of decisions made by Millennial households. Reports by Zillow and Harvard found that Millennials want to live in the suburbs, where homeownership makes more financial sense than renting an expensive apartment in an urban center.
Nearly half of all Millennial homeowners live in the suburbs, compared to 33 percent who live in the city.
The Harvard study found homeownership rates for millennials were 5 percent higher in metro areas where median home prices were 20 percent below the national median. The idea was if millennials could afford to purchase a home, they would, and did so in low-cost markets like Birmingham, Detroit, Minneapolis and St. Louis.
These findings could cause tension in a city such as San Diego, where builders have moved away from single-family homes to focus on multifamily buildings.