National Real Estate Group Ranks Dallas-Ft. Worth As One of the Top Millennial Home Markets
A national real estate group ranks Dallas-Fort Worth as one of the top U.S. markets for millennial homebuyers. The National Association of Realtors zeroed in on 10 metropolitan areas nationwide with the best conditions for millennial homebuyers during the COVID-19 pandemic. The trade group looked at housing affordability, job market conditions, the share of millennials in the area and available home inventory in the 100 largest U.S. markets.
“Record-low mortgage rates have improved housing affordability, bringing more buyers into the market, and multiple offers for starter homes could become common in these metro areas,” the group’s chief economist, Lawrence Yun, said in the report. “With relatively better employment conditions and a strong presence of millennials in these markets, more new home construction will be required to fully satisfy the housing demand as the economy reopens.”
Along with D-FW, Austin and Houston also made the list. Joining the Texas metros were Des Moines; Durham-Chapel Hill-Raleigh, N.C.; Indianapolis; Omaha; Phoenix; Portland; and Salt Lake City. Almost a third of residents in all of these markets are millennials.
The study said a household earning $100,000 in North Texas can afford to buy 56% of homes listed for sale, compared with 45% last year.
Nationwide, the typical household can afford to buy 40% of homes listed for sale, compared with 34% a year earlier, the association reported. North Texas median home sales prices are still slightly below the nationwide level and are significantly lower than most coastal property markets. The D-FW region has attracted thousands of younger residents in recent years, many of whom moved to the area for new jobs.
“Nationally, millennials make up the largest share of homebuyers and these metropolitan areas, in particular, offer great opportunities to realize the dream of homeownership,” said association president Vince Malta. “As states and cities begin to reopen, millennials will play a significant role in the housing market’s recovery.”
North Texas home sales were up 1% through the first four months of this year compared with the same period a year ago, despite a big drop in April sales due to the pandemic. With a much larger local annual home sales decline expected in May, housing activity for the year will likely turn negative. The number of properties listed for sale with real estate agents in the area is down almost 20% from last year...
