It’s been well known in real estate circles for years that location is supremely important when it comes to buying a home. If you’re a millennial, you may be wondering where in these great United States are the most affordable areas to purchase a home.
Young adults today face a number financial challenges that make it hard for them to realize the dream of home ownership, including student loan obligations and stagnant wages.
So, where, you might ask, are young people to go? Is there a specific part of the country that may be more mortgage-friendly for them?
Here are the best places for millennials to buy a home
GoBankingRates.com looked at all 50 states to rank the most and least affordable places for millennials looking to buy a home.
The site was able to come up with an estimated monthly mortgage payment in every state based on a 30-year fixed mortgage, assuming the borrower put 20% of their monthly income toward saving for a down payment.
The final figures, called state affordability rankings, represent the destinations with the highest and lowest down payment and mortgage costs, taking into account median earning. Here are the states with the lowest median list price combined with those other figures.
Here are the 5 best states for millennials to buy a home
|Rank||Median list price||Median earnings / mortgage||Estimated time to save for down payment|
|1. West Virginia||$159,000||$50,130 / $847||Time it would take to save for a down payment: 3.2 years|
|2. Iowa||$179,000||$62,191 / $995||Time it would take to save for a down payment: 2.9 years|
|3. Ohio||$169,900||$55,894 / $948||Time it would take to save for a down payment: 3 years|
|4. Missouri||$180,000||$55,312 / $1,000||Time it would take to save for a down payment: 3.3 years|
|5. Indiana||$180,000||$54,948 / $1,000||Time it would take to save for a down payment: 3.3 years|