More than half of Rochester area Millennials who rent apartments could afford to be homeowners. That’s according to a study from Harvard University, which found 52 percent of people aged 25 to 34 could afford a mortgage.
The study found a big drop in home sales to first-time buyers in 2013. This is happening even though houses and mortgages in most cities are becoming more affordable.
What’s going on? The study notes that while a lot of young adults can afford a mortgage, it’s also true that a huge number cannot. Many are having trouble finding jobs and some are living with their parents. Access to credit could be also be tight.
“Aside from covering monthly homeowner costs, unemployment and income stagnation mean that even in the lowest-cost metros in this analysis, many potential buyers cannot afford at least $5,000 for a 5 percent downpayment,” the study notes.
One thing the study did not address is lifestyle choices. Surveys have shown Millennials want a more urban lifestyle. Many want flexibility to move. This has implications for the local housing market, which has seen a dip in home ownership rates, from 69.9 percent in 2006 to 66.9 percent in 2012.
Links of the Day:
– A reminder that Terry Pegula’s Bills bid is fueled by fracking.
– Even Buffalo radio stations refuse to play Bon Jovi.
– I don’t buy that the Rochester City School District has no schools on this list. Data must be fishy.
– “All 10 states with the largest percentages of uninsured adults now have Republican governors and legislatures.”
– The little discussed suicide problem at America’s firing ranges.
– The University of Michigan is building a fake city for driverless cars.