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Millennials cannot afford to buy houses in Central Austin and in fact are struggling to save the down payment necessary to buy a home anywhere, Community Impact reports.
Texas A&M’s Real Estate Center’s research found that an affordable starter home for millennials is $150,000. However the high costs of construction and land in the state of Texas has made it nearly impossible for anyone to build a single-family home under $200,000. The median home price for a Central Austin home this June was $460,000.
According to data from a study from Fall of last year, the average Austin millennial made $48,700 and the average for student debt for a young resident in the Austin Metro was $16,324. The combination of stagnant wages, high student loan debt, and high home prices mean that it’s very difficult for millennials to buy a home.
A study by Apartment List found that Austinites who were born between 1981 and 1997 would have to save for 21 years to afford a 20% downpayment on a condominium at the median price in Austin. As a result, most millennials aren’t purchasing homes. Only the highest earners, those making six figures and up, are able to afford to buy.
Millennials are looking for smaller homes with less upkeep that are convenient to their work. However, that sort of housing just doesn’t exist in the urban core of Austin.
Developers are also struggling to build housing in Austin. Dealing with many of the city’s regulations extends their time frame and subsequently the cost. Hassles and frustrations often lead to builders concentrating their efforts on the suburbs.
Are you a millennial fed up with the Austin housing market? Good news: rent increases have slowed down and supply is up in the Austin apartment market! Give Austin Apartments Now a call today at 512-258-8224 to find take advantage of the renter’s market and get a great deal on a great place!