Where are millennials buying homes in 2023?
A recent report on millennial homebuying trends showed which metro areas younger homebuyers are looking to settle into.
Silicon valley? Very hot. Florida? Not for millennials.
The San Jose-Santa Clara-Sunnyvale metro area came in first and San Francisco-Oakland-Berkeley came in third on the list due to their high-paying job opportunities. The desire to live and work in the same area as one of the world’s largest tech hubs was also a significant driver in home purchase. The Seattle-Tacoma-Bellevue metro area in Washington came in second place for similar reasons.
The Austin-Round Rock-Georgetown metro area came in fourth and the reasons were similar to the top three. Millennial homebuyers are really interested in tech hubs with a vibrant cultural scene.
The Boston-Cambridge-Newton metro area in Massachusetts and New Hampshire was the first east coast area on the list and it came in seventh. The concentration of universities and hospitals, along with a diverse job market make the Boston area a homebuying destination for millennials.
The Sun Belt has often shown up on lists of hot markets for the past year but didn’t crack the top 10 for millennials.
Are monthly rental costs falling?
While the national average for monthly rent is still above pandemic-level highs, it’s cooled off considerably. In August, the median rent in the 50 largest metro areas in the U.S. fell 0.6% to $1,752 per month. That’s down $7 from July 2023, and down $25 from 12 months ago. Some areas are cooling off faster than others.
While Austin, TX has been a hot market for homebuying, its rental cost have fallen 8% comparing August 2023 to the previous year. Tampa, FL is down 5.5% year-over-year, and Dallas and Raleigh are down 5.4%.
While rental trends don’t directly impact the housing market, lower monthly rental profits may spur landlords into putting properties they can’t turn a profit on into listed homes.
Tampa City Council approves affordable housing measures
The city council in Tampa Bay, FL recently approved a city budget worth $1.9 billion that included $12 million to support affordable housing measures. The budget will maintain tax rates at current levels, but looks to expand several key services, including housing measures.
The money earmarked for affordable housing doubles the amount the city spent on housing measures the year before. The money will fund housing development and expand access to home repairs for income-eligible residents.
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