Affordability might not be the driving force for millennial homeowners anymore, according to QuoteWizard. Quality home investment is.
In its latest report, QuoteWizard compared homeownership rates in all US states over a six-year period to track where millennials are buying homes. QuoteWizard discovered that the 17 states with the highest concentrations of millennial homeownership were also some of the states with the most expensive median home values.
This is because of the differential in home value and mortgage balance metric that showed a strong correlation in the quality of home investment in top growing states for millennial homeownership, according to the report.
Eight of the top 10 states for under-35 homeownership are in the top half in median home value compared to outstanding mortgage debt – suggesting that millennials are motivated by value investment rather than affordability.
From 2013 to 2019, home values appreciated more (27%) than the median millennial income (17%). Above-average income growth during that period in states with higher rates of millennial homeownership is a common factor, QuoteWizard said.