In South Florida, a study concluded that only less than half of the millennial renters can afford to buy a property.
As per a study made by Apartment List, an online rental listing website, renters from 23-38 over the past five years within 16 U.S. metro areas. Researchers considered what percentage of millennial renters in a given metro area could afford a down payment of 20 percent, 10 percent or 5 percent within the next five years.
Only a few millennial renters in Broward, Miami-Dade and Palm Beach counties could afford an average priced condo of $202,500. While only 13 percent of millennial renters could afford a 20 percent down payment, 30 percent could afford a 10 percent down payment and 43 percent could afford a 5 percent down payment.
In spite of less than half of millennial renters being able to buy, Miami is still included in the five metro areas with the highest share of millennial renters on track to put 10 percent down on their first home within the next five years: Minneapolis (34), Houston (34), Philadelphia (33) and New York (31).
But as per George Jalil, broker and president of First Service Realty ERA Powered, the lack of state and city income taxes compared to other cities like New York may be allowing renters to save more.
The study also reckoned the portion of millennial renters that expect to rent for the rest of their lives: Miami and Philadelphia were the only cities that had the highest percentage of millennial renters on track to buy a home within the next year with the most positive attitude about buying for the first time. About 8 percent of millennial renters in Miami and about 9 percent in Philly believed they would never be able to purchase a home and just continue on renting.
Renters in Miami may be more positive about buying since they may be looking to relocate elsewhere in the state to buy, said Popov. He found Miami renters are looking to relocate to Tampa, Jacksonville and Orlando.
Millennial renters in San Francisco (17 percent), New York (15), Los Angeles (15) and Chicago (13) believed they would rent for the rest of their lives.
Millennial renters are looking at town houses in Cutler Bay and Miami Gardens in Miami-Dade County for their first home property. In Broward, millennial renters often consider Pembroke Pines, Hollywood, Tamarac, Coral Springs and Cooper City.
The Miami metro area is included in the least affordable rental markets in the country, according to a 2018 study by Apartment List. As much as millennial renters wanted to get a property, since they are not getting a wage increase, they are unable to do so.