Millennials are struggling to purchase homes in some of the nation’s biggest cities, with real estate prices skyrocketing even as wage growth staggers, and Denver is no different, according to Bloomberg Millennial Housing Affordability Index.
Zillow Group Inc. and Bankrate.com used data from the U.S. Census Bureau to quantify how much more money millennials would need to earn each year to afford a home in the largest U.S. cities. Denver ranked 12th out of the nation’s top 50 biggest cities for least affordability. Based on data from the U.S. Census Bureau, Zillow Group Inc. and Bankrate.com to quantify how much more money millennials would need to earn each year to afford a home in the largest U.S. cities, Denver ranked 12th out of the nation’s top 50 biggest cities for least affordability.
Based on a median home value of $311,525, Denver millennials would need a minimum salary of $42,112 a year to purchase a home. However, according to Bloomberg, Denver’s millennials make a median salary of $39,492 – a gap of more than $2,620.
However, that’s not bad compared with the San Jose, which was the least affordable with a home-salary gap of more than $80,000. Out of 50 metropolitan areas, 37 are actually affordable for the typical 18- to -34 year-old, although the areas that often most appeal to young adults are also the ones where homeownership is the most out of reach, Bloomberg reports.
According to its report, Bloomberg did not consider whether the people studied had actually been able to save for a down payment, which many have not been able to do.
Here’s a look at the index least affordable housing markets for millennials:
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