Millennials Looking to Buy Homes in Arizona Need to Pick Their Spots
According to GoBankingRates, Arizona is just about in the middle when it comes to the “Most and Least Affordable States for Millennials to Buy Homes.”
The ranking evaluated median home prices by each state by first looking at the national median income for people ages 25 to 34 ($60,932) and then calculated the time it would take in order to afford a 20 percent down payment. Assuming millennials were saving 20 percent of their salary each month, they then calculated each state's median listing price and the estimated monthly mortgage payment on a 30-year mortgage to come up with affordability.
Arizona scored 30th on the list — not the best but not the worst either. With a median home price of $269,875, which is higher than the national median price, annual salaries are required to be a bit higher. That’s easy to do in places like Gilbert but not so easy in other places like Tucson, where employment is trending downward.
Currently, the estimated time for millennials to save for a down payment is 4.4 years with a monthly mortgage payment of $1,192. The study mentions that Phoenix has a median list price slightly cheaper than the state average while Tucson’s price of $197,500 could potentially pay just $890 for a monthly payment with a fixed mortgage rate of 3.71.
Even though the state didn’t shine in the new study, the good news is that Arizona remains one of the top 10 states millennial are flocking to. We recently reported on how millennials are taking over the East Valley with Chandler and Gilbert offering a variety of high-paying jobs and new builds to avoid the concept of “sweat equity.” Meanwhile, cities like Scottsdale are experiencing a condo market surge thanks to millennials seeking low-maintenance, technology-driven housing with all the modern bells and whistles.