Where Millennials Can and Can't Actually Afford to Buy Homes

With rising housing costs and crippling student loan debt, where can millennials actually afford to buy?

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Nov 14, 2017, 06:15 ET

LOS ANGELES, Nov. 14, 2017 /PRNewswire/ -- Colorado and Oregon are two of the least affordable states for millennials to buy a home, a new study found.

Unsurprisingly, these states also rank as two of the most popular to move to for the age group.

Personal finance website GOBankingRates considered the median list prices for homes across all 50 states. Based on the median millennial income of $60,932 and a 20 percent monthly savings rate, GOBankingRates calculated the amount of time it would take a millennial to afford a 20 percent down payment, as well as the estimated monthly mortgage payment.

For full study results and more details on methodology, visit: Where Millennials Can and Can't Actually Afford to Buy Homes.

Best States for Millennials to Buy a Home

1. West Virginia

Median list price: $150,000
Estimated time to save for a down payment: 2.5 years
Monthly mortgage payment: $693

2. Ohio

Median list price: $154,900
Estimated time to save for a down payment: 2.5 years
Monthly mortgage payment: $704

3. Arkansas

Median list price: $164,900
Estimated time to save for a down payment: 2.7 years
Monthly mortgage payment: $757

4. Indiana

Median list price: $167,000
Estimated time to save for a down payment: 2.7 years
Monthly mortgage payment: $757

5. Iowa

Median list price: $169,000
Estimated time to save for a down payment: 2.8 years
Monthly mortgage payment: $766

Worst States for Millennials to Buy a Home

1. Hawaii

Median list price: $599,000
Estimated time to save for a down payment: 9.8 years
Monthly mortgage payment: $2,584

2. California

Median list price: $499,950
Estimated time to save for a down payment: 8.2 years
Monthly mortgage payment: $2,168

3. Massachusetts

Median list price: $419,900
Estimated time to save for a down payment: 6.9 years
Monthly mortgage payment: $1,833

4. Colorado

Median list price: $408,068
Estimated time to save for a down payment: 6.7 years
Monthly mortgage payment: $1,780

5. Oregon

Median list price: $352,000
Estimated time to save for a down payment: 5.8 years
Monthly mortgage payment: $1,551

Additional Study Insights

According to the U.S. Census Bureau, Texas, Washington and Colorado are the top three states where millennials are moving, though none top the list of places to buy.
The three cities losing the most millennials are New York, San Diego and Miami.
The Bay Area continues to be a hot spot for millennials, with San Francisco and Oakland both in the top 10 cities millennials are moving, despite the high cost of housing.

About GOBankingRates

GOBankingRates.com is a personal finance news and features website dedicated to helping visitors live a richer life. From tips on saving money, to investing for retirement or finding a good interest rate, GOBankingRates helps turn financial goals into milestones and money dreams into realities. Its content is regularly featured on top-tier media outlets, including MSN, MONEY, AOL Finance, CBS MoneyWatch, Business Insider and dozens of others. GOBankingRates specializes in connecting consumers with the financial institutions and products that best match their needs. Start your journey toward a rich mind and full wallet with us here.

Contact

Kim Dahlgren, Media Relations
GOBankingRates.com
[email protected]
310-297-9233 x138

SOURCE GOBankingRates