Many Millennials have had to substitute student loan debt for mortgage debt, delaying buying a home. A new study finds the current cost of starter homes in every state in the union.
In partnership with Zillow, Business Insider found median home values for homes priced in the bottom third of a state's housing stock based on the most recent data available (March 2019), and ranked states by population size. The most affordable starter homes were located in West Virginia with a median price of $42,300, while the most expensive are in Washington, D.C., with a median value of $335,700.
Currently, the real estate market is a seller's market, according to Zillow. This causes home prices to shoot up, leaving minimal inventory at the middle and low end of the housing market, Spencer Rascoff, Zillow's CEO, previously told Business Insider's Alyson Shontell. "As a result of limited starter-home inventory," he said, Millennials "are renting longer." In the process, they're bypassing the need for a starter home.