The current housing market is just getting tougher and tougher as rising prices clash with less and less homes for sale. First time home buyers are finding this current climate even more challenging, due to initial costs, amongst other things. There is hope, though, as Realtor.com reports that millennial homebuyers will end up faring better in certain housing markets than others. This real estate market has shown us 5 housing markets, however, that are throwing many challenges at home buyers. While cities like San Jose, Calif., have quickly become one of the most expensive markets in America, Omaha, Neb., has also made the list. Here are the toughest housing markets for millennials to purchase homes in:
Salt Lake City
Attraction for millennials
Consumer Affairs reports that all five markets have features that are attractive for young homebuyers. San Jose and Seattle are technology centers, while Salt Lake City, Minneapolis, and Omaha are less-costly cities seen as being very family-friendly.
Nationally, inventory is down 35 percent since 2012 and the median price has risen to $280,000. Realtor.com says the squeeze between prices and inventory is even more acute in these five metros.
Compared to a year ago, active listings in the five markets remain 8 percent lower, age of inventory is 7 percent lower, and list prices are 8 percent higher. Supply is nearly three times lower than the rest of the country.
Additionally, listings in these areas are scarcer and selling faster for more money. In these five metros, active listings are 9 percent lower, age of inventory is 13 percent lower, and list prices are 14 percent higher from a year ago.
Midwestern housing markets are generally viewed as more affordable places to live, but Minneapolis and Omaha appear to be exceptions when it comes to housing. Minneapolis is relatively affordable but has the fewest available entry-level homes.
Homes are a bit pricier in Omaha, but the entry-level housing shortage is nearly as severe. The market has become attractive to millennials in recent years for its highly-rated schools and booming job market.
Where should millennials look for housing? The National Association of Realtor (NAR) Generational Trends Report suggests markets in the Midwest and Southwest will be most accommodative in terms of price and inventory.
The report identified Ogden, Utah; Grand Rapids, Mich.; and McAllen, Tex., as affordable markets that are drawing a large number of millennial buyers.
What are your thoughts on the toughest housing markets? Let us know! Send an email to Outreach@ConsiderTheConsumer.com, find us on Twitter or Facebook, or even connect with us directly on our website! We look forward to hearing from all of you.