A report from Porch, an online service for home improvement projects, found that Boston has a lower millennial homeownership rate than the national average. Just over 34% of Boston millennials own homes, 5.5% points less than the national average millennial homeownership rate of 39.5%, Porch reported.
The millennial homeownership rates are lower than those of previous generations at the same age, the report found, for a variety of reasons, such as higher student loan debt, delayed age of marriage, lack of affordable housing, and different geographic preferences than older generations. The current national homeownership rate is 63.9%, while for millennials it is only 39.5%.
Porch analyzed data from the Census Bureau, the Bureau of Economic Analysis and Zillow in order to rank U.S. metro areas according to millennial homeownership rates. In order to determine some of the underlying factors of the overall rate, they also examined local median home prices, average monthly mortgage payments, median earnings for full-time workers and the cost of living.
The report found several possible reasons for the Boston metropolitan area’s lower-than-average homeownership rates. While local median earnings were significantly higher than the national average of $40,000 at $56,000, cost of living was 14% higher than the national average. The report also found that the median home price was almost double the national average at $504,318, and the average monthly mortgage payment was $1,789, compared to the national average of $893.