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Zillow predicts percentage of Phoenix homes affordable to millennials

by Dalton Herring on July 17, 2015

Just over half of all Phoenix homes can be purchased by a millennial, according to a data release by Zillow.

phoenixPhoenix millennials are able to afford only 56 percent of listings, compared to 70 percent nationally.

Using Census data and Zillow (Nasdaq: Z) listings, the company found the median income of those ages 23 to 34 and compared the prices of listings to 30 percent of their income.

Over the past five years of quarterly data, Zillow found Phoenix with a peak in buyable properties for millennials in 2010 and 2011.

The steepest decrease in homes for millennials happened from 2012 to 2013, falling from 69 percent to 57 percent.

Mark Stapp, director of the Master of Real Estate Development program at ASU, has said the market is hard for millennials to break into.

“Millennials would be buying homes if they could,” he said. “With low wages and school debt, they are pushing those types of decisions to later in life.”

For Phoenix become a more millennial-friendly market, Stapp suggested the city lower land costs to keep the cost of construction down and create more affordable housing.

The data surveyed 96 other metropolitan areas. Akron, Ohio was the highest surveyed at 90 percent of listings available to millennials. Among the worst were Miami, Los Angeles, San Francisco, and New York.



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