(Bloomberg Business) — In the aftermath of the housing crisis, it seemed like millennials might give up on homeownership in favor of a lifetime spent renting squalid apartments in gentrifying urban centers. Fears of that grim scenario have mostly passed, and it’s not uncommon to hear of young faces at open houses, or to read surveys in which renters say they’re finally ready to fork over a down payment.

But wanting to buy a house and being able to afford one are different, according to new research conducted for Bloomberg by Zillow. Young homebuyers in some of the biggest U.S. cities may be out of luck, regardless of their solid credit and the cash they’ve socked away. In three of the 10 largest U.S. metro areas, fewer than half of the homes for sale on Zillow during the fourth quarter of 2014 were affordable to typical 23- to 34-year-olds. In Los Angeles, fewer than a third were within reach. To define affordability, Zillow used the median income of young adults in a given metro and assumed buyers would put 5% down and spend 30% of their monthly income on mortgage payments.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.