The Miami housing market is among the most open to Millennial homebuyers – especially those with student debt.
We find this very surprising, but good news. As debt collection attorneys with a significant Miami collection presence, our experience is that home ownership tends to lead to less debt collection issues. Home ownership among young people is a strong indicator of whether or not they will responsibly manage their debt. On the west coast of the US, we see property prices driven up hugely by Asian Money finding a safe haven in real estate. The same phenomena happens in Miami, but with South American money. That Millennials can still get a foothold in home ownership, despite Miami being a red hot real estate market speaks very well to the future stability of that generation in South Florida.
That finding came from a new study by Apartment List, which looked at the number of years it takes Millennial consumers to save for a down payment in certain metro areas. For Millennials with no student debt, it takes 2.9 years to save enough for a downpayment on a Miami property (compared to 5.3 years nationwide), and for those with student debt, it takes 5.3 years (far lower than the 10.2 years nationwide).
Millennials and Homeownership
Even among Millennials with no college degree, Miami’s housing market offers opportunities. For such consumers, it takes 9.1 years to save for a downpayment, less than the national average of 15.4 years.
Millennials face many problems in today’s economy, but if homeownership among the generation is going to take off in any major metro area, it’s likely to be Miami.
To see how Miami compares with other metro areas, see our chart below, which compares downpayment-saving times for Millennials with and without student debt, along with those with no college degree:
Metro Area | No Student Debt | Student Debt | No College Degree | Share of Millennials with Student Debt |
---|---|---|---|---|
Atlanta | 1.7 | 1.8 | 5.2 | 50% |
Boston | 3.9 | 11.5 | 16.1 | 65% |
Chicago | 3.0 | 3.4 | 7.3 | 61% |
Dallas | 2.6 | 4.3 | 9.2 | 52% |
Houston | 2.2 | 4.2 | 7.5 | 55% |
Los Angeles | 8.5 | 19.9 | 29 | 51% |
Miami | 2.9 | 5.3 | 9.1 | 51% |
New York | 5.1 | 9.4 | 14.5 | 59% |
Philadelphia | 0.4 | 2.5 | 5 | 65% |
Phoenix | 8.4 | 14.2 | 11.2 | 51% |
San Francisco | 11.3 | 63.5 | 48.6 | 49% |
San Jose | 4.4 | 15.0 | 48.4 | 43% |
Seattle | 8.0 | 18.3 | 15.3 | 49% |
U.S. Average | 5.3 | 10.2 | 15.4 | 58% |
– See more at: https://miamiagentmagazine.com/2016/05/25/millennials-find-housing-opportunities-miami/#sthash.BmQ4vY8g.dpuf