If there's one obvious draw attracting millennials to Philadelphia, it's the fact that rent is cheap (at least compared to other major cities). We noted last week that rental prices for 1-bedroom apartments dropped 5 percent in the last year, according to a Zumper report. But convincing millennials to buy a house here? That's another story. A new study by SmartAsset, a financial advice website, found that the average millennial in Philly can afford a $45,700 home, which buys you about 497 square feet of property.
The study used a home affordability calculator to determine what the typical millennial can afford in the city. Then, researchers applied the average price per square foot of real estate in Philly to determine how large a home the value represents.
Given that Philly millennials' median income is $39,413 and the projected median net worth is $1,617, the study found that most young adults here wouldn't have sufficient funds to come up with a down payment for a home. In fact, the study noted that it didn't factor in additional closing costs, so a $47,500 home may actually be pushing it.
So where can millennials get the most bang for their buck? Detroit, where folks can afford a $125,000 abode. That'll earn them the keys to a 3,205 square foot home.
· How much house can millennials afford? [SmartAsset]
· Study: Philly rent dropped big time in 2015 [Curbed Philly]
· Philly's 5 most economically diverse neighborhoods [Curbed Philly]