(NEXSTAR) – Sorry Gen Zers, we don’t have good news for you.
A new generational study breaks down the affordability of an average home in the 100 most populous US counties, and while things are bleak for younger Gen Z homebuyers, they’re not much better for baby boomers.
That’s what the real estate search portal Point2 found there was not a single county where the median home price was below what Gen Z 15-24 year olds could comfortably afford, the Baby Boomers themselves only had 11 counties to choose from.
With the ongoing housing shortage and low mortgage rates, the study’s analysts say Gen Zers are considering smaller homes and need to be open to relocating — Gwinnett County, Georgia is a great option, it turns out.
The study found that Gen Zers could afford 1,505 square feet of living space, which would be easily enough for a three-bedroom home. The least affordable county for young homebuyers was Suffolk County, Massachusetts, where the generation’s net worth and median income was just 245 square feet.
While Baby Boomers typically have much higher net worth, allowing them to make a bigger down payment, their incomes are significantly lower than Millennials and Gen Xers, limiting their affordable mortgage rates.
What is the cheapest district for baby boomers? Turns out it’s also in Georgia — Cobb County — which offers affordable housing with a generous average floor area of 2,501 square feet.
Millennials, Americans between the ages of 25 and 44, are slightly better off than Baby Boomers and Gen Z, but still can’t afford the average home in 66 of the top 100 counties.
However, because of their relatively high median income, millennials can still afford homes in three counties where the median price is over $1 million — San Francisco, San Mateo, and Santa Clara — all in California.
The cheapest affordable homes are in Hidalgo County, Texas ($182,113); Wayne County, Michigan ($211,188); El Paso County, Texas ($225,741); and Milwaukee County, Wisconsin ($236,143).
Who has it best?
The generation with the most options, Gen X, still can’t afford the middle house in 30 boroughs, the report says.
Their combination of net worth and income allows Americans between the ages of 45 and 64 to afford an average home in a majority of the top 100 counties, the only generation to have that luxury of options.
Generation X has far greater spending power — they’re the only generation that can easily afford homes 3,000 square feet and up in 11 counties.
The study’s authors warn that a lack of inventory has pushed up prices and required down payments have increased, but to be able to comfortably buy a home will likely also mean higher interest rates and a higher monthly mortgage rate in the home to take purchase.
“This means that housing affordability is not only a current conundrum, but also a future issue,” the report said.
https://www.wavy.com/news/national/see-the-counties-where-your-generation-can-afford-the-median-home/ Look at the counties where your generation can afford the average home