After you’ve carefully considered how much house you can afford, it’s time to check the market to see what your budget can actually get you. That’s why GOBankingRates studied 45 different metropolitan areas to determine the 20 worst cities for a millennial to buy real estate.
Click through to see the worst places to a buy a home if you’re a millennial.
20. Atlanta, Ga.
Atlanta might not be the best city to buy real estate for millennials, but as you read on, you’ll see it’s certainly not the worst. At a smidge over $200,000, the Atlanta area ranks No. 28 in highest prices in the study. However, at 4.1 percent, the unemployment rate can raise a yellow flag about the wisdom of buying a home anywhere.
Find out which cities are the best and worst for unemployed job-seekers.
19. Phoenix, Ariz.
In Phoenix, just over 30 percent of millennials own their own home, so if you choose to buy, you won’t be the only millennial who owns a house. The higher percentage is due in part to lower millennial home values, which average over $212,000.
18. Houston, Texas
The average millennial home value in the Houston area is $215,435. Though Houston’s home prices are the No. 22 highest, the city’s mortgage affordability is in the top ten best. Plus, over 29 percent of millennials in the area own their own home.
17. Cleveland, Ohio
Prices for homes in Cleveland really aren’t terrible, with the average millennial home value at just over $160,000. However, what earns Cleveland a spot in this list is its unemployment rate: At 5.2 percent, it’s the highest of any of the 45 cities studied, making it harder to commit to buying a home.
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16. Virginia Beach, Va.
The average millennial home value in the Virginia Beach area barely eclipses $221,000. However, Virginia Beach has the No. 15 lowest percentage of millennials who own their own home at almost 29 percent.
15. Providence, R.I.
The average value of millennial homes in Providence isn’t outlandish. At $226,281, it’s only the No. 18 highest price. But, it has the 13th worst mortgage affordability rating and barely 29 percent of millennials in the area own their own home.
14. District of Columbia
The nation’s capital is expensive but more affordable than the average price suggests. The average millennial home is valued at over $370,000, the seventh-highest priced area in the study. Coupled with an unemployment rate of only 3.6 percent, Washington D.C. finished as only the No. 14 worst place for aspiring millennial homeowners.
13. Chicago, Ill.
Chicago finishes as No. 13 worst city for millennial homebuyers. The average millennial home value is just over $252,000 which is the No. 15 highest average price in the study. The city also has a 4.7 percent unemployment rate — the fourth-highest of the cities studied.
12. Boston, Mass.
Boston has the sixth-highest average millennial home value of cities in the study at almost $430,000 — high enough to rival some of California’s most expensive cities. However, Boston doesn’t place quite as high on this list because 27.6 percent of millennials own their own homes and the city has a decent employment rate.
11. Miami, Fla.
If you can’t take the heat, or you get irritated by high housing costs, Miami might not be for you. Miami’s $272,390 average millennial home value is only the No. 14 highest on the list. But, the city comes in No. 12 for mortgage affordability and over 26 percent of millennials in the city own their own home.
10. Portland, Ore.
Buying a home as a millennial in the Portland area isn’t impossible, as almost 30 percent of millennial residents are homeowners. The average millennial home value approaches $300,000, the 10th-highest in the study. Mortgage affordability isn’t any better, making Rip City one of the worst cities to buy a home.
9. Sacramento, Calif.
Costs of owning a home in Sacramento might seem reasonable in relation to other cities in California, but it remains one of the worst cities for millennials to buy a home across the country. The average millennial home value comes in at over $302,000, matching the city’s overall ninth-place ranking.
8. Seattle, Wash.
Seattle might be a hot spot for hipsters, but you’ll have to pony up a ton of cash to buy real estate in the city. The average millennial home value is almost $343,000 — the eighth-highest of any city studied. Only about 29 percent of millennials in the area own their own home, and the city had the No. 7 worst mortgage affordability rating.
7. Riverside, Calif.
The Riverside area has almost one-third of millennial residents as homeowners. But, those millennials didn’t buy their homes cheap: the average millennial home value in the area is almost $280,000, the No. 12 highest price of the cities surveyed.
6. Las Vegas, Nev.
Las Vegas’s sixth-place finish on this list is driven by the low percentage of millennials who own homes, finishing as the eighth-lowest of any city in the study. The average millennial home value is just under $215,000, but with an unemployment rate of just over 5 percent — you might think twice before committing to buying a home, despite the state of Nevada’s economic growth in 2017.
5. San Diego, Calif.
In San Diego, the average millennial home value is $452,612.00, But, despite the lower cost than other California cities like San Francisco and San Jose, it has a lower percentage of millennials who own their own homes than every city except Los Angeles and is tied with New York, at just 19.8 percent.
4. New York, N.Y.
If you want to live in New York City, one of the largest metropolitan areas in the country, you better be making a lot of money. The New York area is the most expensive outside of the state of California, with an average millennial home value of over $480,000. The area also boasts the second-lowest percentage of millennials who own their own home of cities surveyed.
New York is, however, one of the best cities to land your dream job.
3. San Francisco, Calif.
The Bay Area takes the bronze for worst cities for aspiring millennial homeowners, starting a clean sweep of undesirable superlatives for California cities. With an average millennial home value of almost $718,000, it’s hard to save for a down payment, let alone budget for a mortgage.
The area also has the fifth-lowest percentage of millennials who own a home, at just 20.5 percent, and it has the second-worst mortgage affordability behind San Jose.
2. San Jose, Calif.
The San Jose area had the highest average millennial home value of any city at over $737,000, so start saving up for your down payment. The area has the fourth-lowest percentage of millennials who own homes at just about 20 percent and was also ranked as the worst city for mortgage affordability. But, on the sunny side, unemployment is very low at just 3 percent.
1. Los Angeles, Calif.
Los Angeles tops the list for the worst city for millennial home ownership. Only 17.8 percent of millennials own homes in the area, the lowest percentage of any city studied. In addition, the average millennial home value was over $560,000 — the third-highest of any city studied.