Despite it making more financial sense to buy rather than rent in many markets, many Millennials are choosing to rent.
For some, it’s the draw of urban living. For some, it’s the freedom to pick up and move at a moment’s notice. For some, it’s about not wanting to be tied down by a mortgage. And for some, it’s about saving right now so they can buy that house when they’re ready.
And there are a multitude of other reasons why many Millennials choose renting over buying.
But where does it make sense to rent? A new report from RealtyTrac shows the best and worst rental markets for Millennials.
According to RealtyTrac’s analysis, there were 52 counties where the share of the millennial population, those born between 1979 and 1993, increased at least 10% during the housing crisis, from 2008 to 2013.
Of those markets, the most affordable were:
- Fulton County, Georgia, in the Atlanta metro area
- Durham County, North Carolina in the Durham metro area
- Harris County, Texas in the Houston metro area
- Dallas County, Texas, in the Dallas metro area
- Mecklenburg County, North Carolina, in the Charlotte metro area
In those top five most affordable rental markets for millennials, the average rents accounted for 27% or less of average wages.
Other so-called “millennial magnet” markets where average rents represent less than 30% of average wages include counties in Columbus, Ohio; St. Louis; Indianapolis; Milwaukee; Kansas City; Nashville; Little Rock, Oklahoma City; Minneapolis; Des Moines; Richmond, Virginia; Portland; and Philadelphia.
Check out the interactive graphic below (courtesy of RealtyTrac), which shows the most affordable rental markets for Millennials.
On the other end of the scale, among those same 52 counties where the share of the millennial population increased at least 10% during the housing crisis, the least affordable for renters were:
- Kings County, New York – Brooklyn
- Queens County, New York – Queens
- Virginia Beach City, Virginia
- Onslow County, North Carolina in the Jacksonville metro area
- San Francisco County
The Average rents in all five of these markets require more than 43% of average wage earner’s income.
Other “millennial magnet” markets where rents represent more than one-third of average wages include counties in Panama City, Florida; Seattle; Clarksville, Tennessee; Orlando; Fayetteville, North Carolina; Portland; Charleston, South Carolina; Baltimore; Denver, New Orleans; and Austin, Texas.
Check out the interactive graphic below (courtesy of RealtyTrac), which shows the least affordable rental markets for Millennials.