Millennials have a reputation for being poor savers and impulsive buyers. The truth is most Millennials have a higher level of financial literacy than most people realize.
One report shows one in six Millennials have over $100,000 in savings. That alone should tell you that a good percentage of the “digital generation” is more conscious about their finances.
There is also other research indicating that a vast majority of Millennials are turning towards renting houses, apartments, and condos as opposed to purchasing real estate.
Because home prices are increasing, renting is more convenient.
Not only that, but Millennials are constantly looking for better job prospects, and are often willing to move across the country if an opportunity seems promising. This is another reason to rent. If you’re a Millennial looking to settle down though, then we’ve outlined some of the best cities for jobs and housing for you.
The Best Cities for Jobs and Housing for Millennials
Millennials out looking for good jobs and affordable housing should consider heading south. Some great locations for Millennials can be found in southern states. These cities include the following:
- Fort Worth, Texas
- Jacksonville, Florida
- Charlotte-Concord-Gastonia, North Carolina
- Grand Rapids-Wyoming, Michigan
- Oklahoma City
According to a Housing and Mortgage Review report released by Arch MI, these cities have the most favorable conditions for Millennials. Fort Worth, Texas leads the pack as the most promising location. The main reasons include a growing job market – there was a 2.7% leap. There are also more affordable housing options in this area. The median-priced housing available in Fort Worth, Texas stands at 27% of a family’s income while the rest of the country stands at 31%.
The other cities also bring a lot to the table. For example, Jacksonville has enjoyed the most job growth (3%) of the five cities mentioned. Oklahoma City has seen the smallest jump in housing prices – a 4.6% difference year after year.
The same report shows that states such as Texas, West Virginia, and Alaska have the best odds of seeing lower home prices in the future. It is important to note that even though these cities have the best home prices now, other locations are also enjoying favorable prices. A good rule of thumb to live by is to never spend more than 30% of your income on your mortgage or rent.
How to Find Cheap Houses to Buy No Matter Where You Are
Assuming that you already have good credit and a good job, you can likely find affordable housing in your area. Here are some tricks to find the best pricing on housing in your area:
- Consider fixer-uppers: there is a reason why this method is so popular; it is one of the most affordable ways to buy a home. In many cases, doing renovations can cost less than buying a new home. These renovations also add value, so if you do sell, you’ll probably see a return on your investment. Don’t be afraid to consider a fixer-upper. It’s cheaper, and fixing it up could actually be really fun!
- Look at cities that were hit hard during the housing market crash of 2008: consider cities like Miami, Detroit, Las Vegas, Tampa, and Orlando. These cities were hit particularly hard by the housing market crash of 2008. Some of these cities haven’t fully recovered from the shock so the home prices may be more reasonable than in other parts of the country. This may be a good option if you want to stay in a more urban area.
If cost plays an important role in your decision to buy a home, you may be better off considering locations that are 30-40 minutes outside the city. Housing in these areas usually costs less, and you’ll probably be able to get more square footage.
- Consider foreclosed homes: it’s unfortunate that foreclosures happen, but these properties can be extremely cheap. If you’re considering this, be aware that previous owners may have trashed the house. This essentially turns the property into a fixer-upper as opposed to a move-in ready home.
- Consider less expensive types of houses: white picket fences and neighborhoods with homeowner associations may be ideal. Sometimes these places are more expensive because of homeowner’s association fees. Instead, Millennials may want to consider other types of housing. Homes in rural areas for example, tend to be cheaper.
Finding the right house and find the right job can be difficult. It takes preparation and expert research. The above-mentioned cities are ranked the best places for Millennials looking for excellent job prospects and home prices. With the right kind of attitude though, you can find a home or a job that suits you anywhere.