Here’s The Most Affordable State For Millennials To Buy Homes
Staggering student loan debt is only one of the many reasons that keep many millennials between the ages of 25 and 34 from becoming homeowners. But just because many millennials delay purchasing their first home, that doesn’t mean that they’re not interested in becoming homeowners. A recent survey conducted by personal finance website GoBankingRates.com found that 43 percent of adults surveyed between the ages of 24 and 35 are still prioritizing saving for a home, despite their other financial burdens.
To help these prospective homeowners find affordable housing across the United States, GoBankingRates conducted a study to figure out which states are most affordable for millennial homeowners. For each of the 50 states, GoBankingRates calculated the median list price for houses in that state, the median amount of money that millennials earn in that state, the average monthly mortgage payment on a house in each state and the estimated amount of time that it takes for millennials to save for a down payment on a house.
The results? Millennials looking to buy a home within the next couple of years should consider moving to West Virginia, which is the most affordable state for millennials to buy a home in within the U.S., according to the study’s findings. Homes in this southern state have a median list price of $159K — the lowest when compared to the median list price of homes in the U.S.’ other 49 states. The study also found that the average monthly mortgage payment on a house in this state is by far the lowest on the list at $847. Taking into account that the median yearly income of millennials in West Virginia is $50,130, the financial planning website calculated that millennials would have to save for approximately 3.2 years to make a down payment on their first home.
If you’re not so psyched about the idea of moving to West Virginia to buy your first home, consider moving to Iowa, the second most affordable state for millennial homeowners. Although Iowa came in second place, the study found that it takes the shortest amount of time for prospective millennial homeowners in this state to save for a down payment on their first house compared to other states — approximately 2.9 years.
Those looking to leave the grind and hustle behind by relocating to Hawaii might be disappointed — the Central Pacific U.S. state ranked at the bottom of the list and was found to be the least affordable state for millennial homeowners. The median list price of a house in Hawaii is a whopping $615K and the average monthly mortgage payment is $3,256. Since the average monthly salary for millennials in Hawaii is $6,076.25, their mortgage payment typically takes up more than half of their earnings. Not really the fairytale life that we were envisioning!
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