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MIAMI – Even in lower-cost areas, housing affordability has grown more challenging since the pandemic when workers moved out of urban centers to work remotely. The resulting surge in demand has pushed U.S. home prices to record highs, making it especially hard for millennials to purchase a home.
About 50% of renters and homeowners are struggling to afford their housing payments, with 14% of millennials using retirement savings to cover their payments. Median incomes for millennials have risen over the last five years, and the price-to-income ratio has eased from 3.2 in 2019 to 3.3 in 2023.
However, home prices have risen 40.7% since 2018, dwarfing the 31.6% increase in incomes, creating financial barriers to homeownership for this group. The median home purchase price for millennials in 2023 was $415,000, which is 77% higher than the median home purchase price for Gen Z buyers, and second only to the Gen X median purchase price of $445,000.
The gap between millennial home purchase prices and the median purchase price across all buyers is greatest in parts of the South and Midwest.
In Florida, the median home purchase price for millennials is $435,000, with median home values for all buyers at $425,000. The median income of millennial home buyers is $131,000, slightly more than the median income for all buyers at $130,000. The difference in home purchase price between millennials and all buyers is 2.4% higher.
Source: Pasco News Online (06/11/24)
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