It’s hard not to recognize that there is a new trend in the Mile High City, and that trend is modern architecture. If you live in Denver, you might be like me and every time you drive through the streets of the Highlands, Sloan’s Lake, or Cherry Creek, another brick home has been demolished and yet another, ultra modern, box-like structure, has taken its place. With Denver’s current building trends, it might be a safe assumption that modern architecture is indeed the new face of Denver.
Austin, TX. Whether you’re picnicking at the natural swimming grotto, Hamilton Pool, learning how to two-step at the Broken Spoke, or indulging in an Austin Eats Food Tour, this city never sleeps nor will it disappoint.
Although Austin offer’s Millennials an abundance of activities, this isn’t the main reason that we have identified this city as one of the most promising destinations for young adults. With a 26.2% Millennial population within the city limits, young adults are thriving largely due to its booming job economy. The city is headquarters for large tech and telecom giants Dell, IBM, and AT&T and added 29,300 net new job since September 2014.
In 2011, the rate of urban population growth across the United States, outpaced the growth within suburbs for the first time in nearly a century! The reason why? Cities like Seattle, WA are increasingly becoming more “livable!”
Recognized by WalletHub as number one in the nation for their lucrative job market and second highest for participation in physical activities, Seattle promises Millennials abundant employment opportunities paired with an active, lively, and “foodie” centric city to reside and thrive!
ATL, Hotlanta, A- Town… whatever you want to call it, this city is one of the country’s finest destinations for young professionals! Known for its southern hospitality, diverse music culture, and sports teams, this city offers its residents a variety of reasons to call this place home.
So how about its real estate market? In July, Atlanta reported its strongest month in 2015 and best month-over-month performance since 2011. According to Trulia, Atlanta’s median sales price for homes between Jul 15 to Oct 15 was $255,000 or $183 per square foot. This is compared to the average U.S. home prices at $180,800 and $131 per square foot. So, are Millennials able to afford a great starter home in one of Hotlanta’s desired neighborhoods?
Earlier this week, we published 5 of the top cities in America for Millennials to reside and thrive. Over the next few weeks, we will examine each city further by looking at their respective real estate markets and with the help of local experts, look at one example of a starter home in each area.
We have enlisted the help of four Sotheby’s real estate professionals in each city, and asked them to choose one home that would fulfill the needs of a typical, young, working professional looking to live in a desired neighborhood, and priced somewhere between $425,000-$475,000.
Before debuting our first featured city and home, we asked Brittni Biren and Brett Baird with Citywide Home Loans, to help us demonstrate what a monthly mortgage payment could be for a home purchased for $450,000.
For this project, we chose a 3 bedroom, 2 bath single family home in the coveted Highlands neighborhood in Denver. Here is what a mortgage payment on this home would look like using an individual with a 720 FICO score.
Ready to purchase a home? Don’t forget to contact the McKenney Team!
Money recently published the Top Five Cities in the United States for Millennials to reside. The list focuses on places where job growth is projected to be above average; food, rent, and other necessities are relatively affordable; and there are high concentrations of grocery stores, pharmacies, laundromats, and other amenities. They also considered which cities offer loads of fun bars, restaurants, and leisure activities. While we agreed that all five cities provide Millennials all of these things, there are two that we believe Money failed to mention; Minneapolis and Denver.
Intrigued by this article, we are curious what our top five city’s real estate markets look like and also what $450,000 can get you for a home in each area. Over the next few weeks, with the help of four young and driven brokers, we will look at each city’s housing market and an example of the perfect starter home for a Millennial living in each city.
To begin, here is our list of five of the top cities for Millennials to Reside & Thrive:
If you’re a young professional who needs their latte in the morning, Seattle is the city for you. With a Starbucks store for every 4,000 people, you are pretty much guaranteed to have vanilla frappuccino within a quarter mile of your home. With a thriving start up community and home to large corporations such as Amazon, Microsoft, and Boeing, Seattle ranks #1 for metropolitan cities for Millennials to live in according to Forbes. In the study, Seattle topped the charts because of its median pay at $55,500, 4% unemployment, and 70% job satisfaction rate for professionals. Above average employment opportunities is matched with the killer skyline, walkability, as well as one of the best destinations for foodies and singles.
Tuesday, CNBC’s Diana Olick reported that Americans can expect unaffordable rents to worsen.
According to CNBC’s report, by 2025 13 million renters will spend 50% of their income on rent. This comes at a time when we are seeing more renters than in U.S. history. Homeownership rates recently hit a 48 year low at 63.4 percent in the second quarter of this year.
Since 2010, the rental rates across the United States have increased 14 percent. In a recent study, Zillow found the cost of renting a home in the U.S. has risen to its least affordable levels ever. Renters in the U.S. can now expect to pay around 30.2 percent of their monthly income for rent, which is the highest percentage recorded in history.
One of the largest contributors of this problem, is the U.S. and private sector’s inability to provide affordable housing. According to one study, back in 2013 the median rents of newly constructed units was $1,290, which is about half the median renter’s monthly household income. Luxury apartment rentals are popping up all over major U.S. cities, while the supply of affordable multi-family homes remains meek.
The question is, how long will renters be willing pay rental rates that are increasing 4 percentage points faster than inflation and more than double U.S. home prices?
Millennials. Are we a generation with commitment phobia?
We rent our dresses, share our cars, and download our movies illegally so we can view it just the one time. Even our music, through applications like Spotify, is accessible without the commitment of actually owning our favorite artist’s music. If all signs point to our generation having a fear of ownership of something so simple like a handbag, then are we really that surprised that Millennials are known as serial home renters?