Homeownership Is a Far-Off Dream
According to the GOBankingRates survey, 21 percent of millennials between ages 18 and 24 say their ideal home would cost less than $200,000. About 22 percent of older millennials ages 25 to 34 say they would prefer to pay between $200,000 and $300,000 for a home. Both percentages reflect the highest number of responses per price range.
The median list price for homes vary by state: West Virginia comes in the lowest in the U.S. at $150,000, and Hawaii has the highest median price at $599,000. Even in the most cost-friendly state, West Virginia, millennials would have to save for 2.5 years just to afford the 20 percent down payment on a median income of $60,932 a year, according to a separate GOBankingRates study that identified the most and least affordable states for millennial homeowners.
As a result, millennials are about half as likely to own a home as young adults ages 25 to 34 did in 1975, according to the U.S. Census Bureau. In fact, more millennials than ever are living at home with their parents, whether to save money for a down payment for their own houses, because of job insecurity or to pay off student loans. In 2005, 26 percent of Americans 18 to 34 lived with their parents; by 2015, the number had climbed to 34.1 percent, the Census Bureau reported.
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