"Hey, honey, let's move to the suburbs. This town is getting me down!" Honey, "now, wait a minute; there are things to consider." Millennial city-dwelling renters (aged 26 to 40), according to Zillow, are the largest generational group that can potentially move to the suburbs. Two factors boost that potential. First, their current income and rent suggest the affordability of a suburban starter home. Second, their occupation and the industry they work in point to the feasibility of telecommuting. However, the problem is starter-home prices in 37 of the nation's 50 largest metro areas are often significantly above the national starter-home average of $131,740. Renting millennials in high-cost San Francisco and Seattle, for example, may have the highest incentive to look to the suburbs, but they face pricier starter homes than most other metro dwellers. Less expensive cities often have affordable starter homes within easy commutes, either in older inner suburbs or newer outer suburbs.
Still, there is some current evidence from Realtor.com that demand and upward price pressure are higher in the suburbs than in the urban core. Raw population growth generally requires more suburban space than the city space available for gentrified housing, the kind millennials love to populate while they're still young.
Source: Zillow.com and Realtor.com
Comments