Numerous reports in recent months have revealed one thing in common: Compared to other major metros, Philadelphia is an affordable city for millennials. Still, these folks in their 20s and 30s aren't buying.
One glaring reason: They're still staring down student debt.
A new report by ApartmentList.com delves into this category of millennials, and has found that college-educated millennials with student debt have to save for 10 years to afford a 20 percent down payment. That's compared to five years for those without debt.
The good news: It doesn't take nearly as long to save up enough money for millennials in Philly. In fact, Philadelphia is one of four metros where even non-college educated millennials can actually afford to live.
Here, this group makes an annual median income of $31,270 and saves $150 a month. Assuming the starter home down payment is 20 percent, non-college educated millennials would need five years to save up enough to purchase a home. Compare that to a whopping 49 years in San Jose and San Francisco, California.
Still, five years is double the amount that a college student with debt needs to save buy a home. And college-educated millennials with no debt at all only need 0.4 years to save up enough money for a down payment. (It should be noted that addition to having higher incomes, these two groups tend to get more financial help from their families, too.)
- Is Student Debt Stopping Millennials From Homeownership? [Apartment List]
- Philly's home values are at an all-time high [Curbed Philly]
- Philly named 2nd most undervalued city in U.S. [Curbed Philly]
- Why aren't millennials buying in Philly? [Curbed Philly]
- Philadelphia real estate market reports [Curbed Philly]