Millennials are faced with one of the toughest home buying seasons in history, according to a new analysis released Friday by realtor.com®. (File Photo: KUTV)
(KUTV) — Millennials are faced with one of the toughest home buying seasons in history, according to a new analysis released Friday by realtor.com®.
The combination of low inventory, escalating home prices and high demand have made Salt Lake City and other cities nationwide difficult for would-be buyers between the ages of 25 to 34.
"Millennials want to buy, but record-low inventory is making it extremely difficult," Danielle Hale, chief economist for realtor.com®, said in a press release. "Our analysis shows millennials are facing challenges in both established markets such as San Jose and Seattle, as well as more recently popular areas like Omaha and Salt Lake City. Despite the difficulties, first-timers are optimistic and more than willing to weather the challenges this spring has to offer."
Nationally, inventory is 35 percent lower than the spring of 2012 and prices have reached a new high of $280,000. The shortage is even more acute in these five metros, which includes Salt Lake City, San Jose, Seattle, Minneapolis and Omaha, Neb.
Salt Lake City ranked third behind San Jose and Seattle respectively.
The analysis said that millennials make up a higher share of the population, at 14.6 percent, compared to 13.4 percent for the U.S. In Salt Lake City, millennials on average earn $67,800 annually and make up 15.5 percent of the total population and account for 26 percent of total realtor.com® page views in the area.
The median list price in Salt Lake City is $394,000 leaving millennials struggling to find their place in the hot housing market. Many homes under $350,000 are getting scooped up instantly by older buyers who often have more money, the press release said.