Millennials face a very imbalanced, mixed financial landscape in the United States these days. On the one hand, for example, unemployment is low, but on the other hand, salaries have stagnated in terms of growth. This combined with increasingly burdensome obligations like student loan debt contribute to a rising cost of living, especially among younger Americans. And a significant corollary is the lack of affordable housing, leading to a smaller percentage of Millennials buying and owning homes, a trend which doesn’t bode well for long-term prosperity.
In order to help Millennials find affordable housing, a recent study conducted by finance website GOBankingRates analyzed median home prices across the U.S. relative to the national median income for Millennials, defined as people ages 25 to 34, due to the Census Bureau’s data parameters. That income is $60,932.
From there, the study assumed Millennials put away 20% of their income each month to save up for the 20% down payment on a home. This served as the basis for determining the amount of time it would take to afford the down payment and the estimated monthly mortgage payment in every state based on a 30-year, fixed-rate mortgage. All housing data is based on Zillow’s July 2018 index.
Click through to see the best and worst states for Millennial homebuyers.
Least Affordable States for Millennials
One of the issues with the least affordable states is their popularity….