Millennials homeownership in the United States have achieved a significant milestone, with a homeownership rate of 51.5%, as per the latest data from the U.S. Census Bureau. While the number of millennial homeowners has increased, the location of your home purchase can significantly impact your ability to afford and maintain it, particularly for a generation that came of age during the financial crisis.
In September, Scholaroo, a college scholarship resource, conducted a ranking of states with the highest and lowest millennial homeownership rates using data from the U.S. Census Bureau. Here is a breakdown of the findings:
Top 5 States with the Highest Millennial Homeownership Rate:
- West Virginia
Iowa leads the pack with the highest millennial homeownership rate at 63%, according to the U.S. Census Bureau. The state is not only a frontrunner in homeownership but also ranks first in affordability and fifth in terms of personal finance. Zillow reports the average home value in Iowa as $212,062, showing a 3.0% increase over the past year. Bank Rate notes the median house price in Iowa at $239,000. WalletHub also identifies Iowa as one of the least stressed states in the country, while Bankrate highlights its affordability for retirees, attributing it to low crime, excellent healthcare options, and overall affordability.
Top 5 States with the Lowest Millennial Homeownership Rate:
- New York
- Rhode Island
Hawaii has the lowest millennial homeownership rate at 33%, as reported by Scholaroo. The state also claimed the top spot in health and ranked fifth in political and social environment in the same report. CNBC’s 2022 America’s Top States for Business study identified Hawaii as the most expensive state to live in based on an index of prices for various goods and services. A doxo report from August revealed that Hawaii was the most expensive U.S. state based on monthly costs, with residents spending $3,070 monthly—50% above the national average of $2,046.
For those considering homeownership in Hawaii, the average monthly mortgage bill is $2,247, while the average rent is $1,856, reflecting the financial challenges associated with living in the state.