Austin among hottest markets for millennial homeownership
Americans are increasingly nervous about homeownership, according to a new trend report from Trulia, but don’t expect that to slow growth in the Lone Star State. The real estate listings hub projects that the markets in four Texas cities — including Austin — will continue to boom in 2018.
To compile a list of the 10 U.S. housing markets expected to grow in the coming year, Trulia looked at five key factors: job growth; starter-home affordability; inbound listing searches as a gauge of a market’s popularity; vacancy rates; and the share of adult population under age 35. (The latter was looked at as part of a nationwide trend of greater homeownership among millennials.)
Although relatively less affordable than other cities (47.5 percent of one’s income is needed to buy a home, for example), Austin's steady job growth (2.3 percent) and young inhabitants (26.3 percent) secured it the No. 7 ranking.
Other Texas cities with favorable outlooks include San Antonio, which grabbed the fifth spot with a low share of income needed to buy a home (28.3 percent); good job growth (2.2 percent); and a large under 35 population (19.7 percent). Also on the list is Fort Worth, coming in the sixth place slot with 2.6 percent job growth; a 30 percent share of income needed for home ownership; and 21.3 percent of the population under 35.
El Paso fared the best in the state at No. 4 with the highest rate of job growth among the listed cities (2.7 percent); a low portion of income needed to buy a home (32.6 percent); and a booming populace of young adults (21.7 percent).
The rest of the list was concentrated in the South and Midwest. Grand Rapids, Michigan was listed as the top city for projected growth.