When it comes to the “own versus buy” debate, Philadelphians always leans toward buy, with a majority of residents falling in the homeowner category. But when it comes to millennials, that’s not the case.
About 36 percent of millennials living in the Philadelphia metro own homes, according to a new analysis by real estate website Adobo. That ranks Philly No. 48 out of 100 in terms of U.S. metros with the most millennial owners. The national average of millennial homeowners is 31.2 percent.
For the analysis, Adobo used information from the U.S. Census Bureau’s 2015 American Community Survey, with 2015 being the most recent data available. Homeowners in the 18 to 35 age bracket were included. The Philadelphia metro was defined as Philadelphia, Camden, and Wilmington, Delaware.
With Philly’s number above the national average, that means although getting a deed may seem implausible to many millennials, it’s still very possible, Adobo spokesperson Sam Rabdil said.
The analysis also found that the average value of a millennial-owned home in Philly is $236,035. Based on that number, the average average millennial in Philadelphia would have to save for 11.6 years in order to afford a 20 percent down payment on a home.
Still, the report notes that while millennial homeownership is doable in many U.S. cities, the increasing shortage of home inventory and increasing values won’t make it any easier. Indeed, in Philly home inventory has dropped 32 percent in the last five years, while home values jumped 5 percent in early 2017.
- Millennial Homebuyers [Adobo]