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.)
The other affordable metros for millennials without a college degree are Atlanta, Kansas City, and Detroit.
- 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]