Dive Brief:
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It’s more expensive to buy a home than to rent one almost anywhere in the country—except in locations where millennials want to live most.
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In the 25 counties whose jobs and amenities make them most popular with young adults, new homeowners pay 36% of their income on housing, while tenants devote 30%, according to a new study by RealtyTrac.
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The study, based on data from the U.S. Department of Housing and Urban Development, showed that in the majority of other counties, rent for a three-bedroom home costs an average of 27% of median household income, while buying a comparable property requires 25%.
Dive Insight:
The lack of affordable housing in areas with good jobs for millennials compounds a problem for young, first-time homebuyers, a segment of the population that has struggled with higher-than-average unemployment, entry-level salaries, and tight credit standards that have shut them out of homeownership.
For builders hoping to appeal to first-timers, the best markets offer a combination of good jobs and affordable housing.