MReport July 2020

TheMReport — News and strategies for the evolving mortgage marketplace.

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M R EP O RT | 7 MDWELL Source: National Association of Realtors, "Top 10 Most Favorable Areas for Millennials During the Pandemic Best Markets for Millennials During the Pandemic Affordability in these metros surpasses the national average, with all sharing increased levels on inventory. 10 Best Markets for Millennials Metro State Affordability Score (Year-Over-Year Change, April 2020) Durham-Chapel Hill-Raleigh North Carolina 23% Dallas-Fort Worth-Arlington Texas 22% Portland, Oregon/Vancouver Washington 17% Omaha, Nebraska/Council Bluffs Iowa 15% Houston-The Woodlands Texas 14% Salt Lake City Utah 13% Phoenix-Mesa-Scottsdale Arizona 12% Indianapolis-Carmel-Anderson Indiana 12% Austin-Round Rock Texas 11% Des Moines-West Des Moines Iowa 11% I n a new study, the National Association of Realtors (NAR) identi- fied the best markets for millennials during COVID-19. "Record-low mortgage rates have improved housing affordability, bringing more buyers into the market, and multiple offers for starter homes could become common in these metro areas," NAR's Chief Economist Lawrence Yun said. "With relatively better employment con- ditions and a strong presence of millennials in these markets, more new home construction will be required to fully satisfy the housing demand as the economy reopens." The NAR states that the typical household can afford to buy 40% of the homes currently listed for sales, which is an increase from last year's 34%. However, in the 10 markets listed by the NAR, affordability in- creased more than it did nationwide. A household earning $100,000 in Dallas can afford to buy 56% of homes listed compared to 45% last year. According to April 2020 employment data, employment fell by an av- erage of nearly 13% in the largest 100 metro areas compared to last year. However, employment in Dallas, Houston, Salt Lake City, and Phoenix fell 8% from the year earlier.

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