Honolulu Millennials Lag Behind Nationwide Pace for Home Ownership
The gap between the value of millennial-owned homes and the median home price is one of the largest in the U.S. But not all hope is lost.
As the oldest millennials reach their mid-30s, an age when people traditionally own their homes, more are living with parents or renting than ever before. A recent study by Abodo showed that only 18.3 percent of homeowners in Honolulu are millennials, ranking 134th in the nation for millennial home ownership.
When looking at the study’s map below, you’ll immediately see a correlation between the areas in blues and purples, where the percentage of millennial owners is lowest, and housing prices. It’s no surprise that some of the places known for the most expensive housing, such as California and New York, have similarly high numbers of millennials renting or living with parents to Honolulu. The average value of a millennial-owned home in Honolulu, according to Adobo, is $494,116. That’s well under the May 2017 median home price of $712,000, and one of the largest gaps in the U.S.
IMAGE: COURTESY OF ABODO
Assuming a 20-percent down payment and the average price of a home, Abodo estimated it would take someone 24.7 years to save for a down payment in Honolulu. If you’re in that under-35 age group, don’t read that high number and be discouraged—there are other options, such as 0 and 3 percent down-payment options for first-time homebuyers. Call a lender or a Realtor to help you get started, or consider attending a first-time homebuyer clinic. A number of local businesses, including Bank of Hawai‘i, Locations and Berkshire Hathaway HomeServices, offer them regularly.
The full report can be found here.
Disclosure: Rachel Ross is a Realtor with Berkshire Hathaway HomeServices Hawai‘i Realty.