Where Millennials Can and Can’t Actually Afford to Buy Homes

With rising housing costs and crippling student loan debt, where can millennials actually afford to buy?

Los Angeles, CA – Nov. 14, 2017 (PRNewswire) Colorado and Oregon are two of the least affordable states for millennials to buy a home, a new study found.

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Unsurprisingly, these states also rank as two of the most popular to move to for the age group.

Personal finance website GOBankingRates considered the median list prices for homes across all 50 states. Based on the median millennial income of $60,932 and a 20 percent monthly savings rate, GOBankingRates calculated the amount of time it would take a millennial to afford a 20 percent down payment, as well as the estimated monthly mortgage payment.

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For full study results and more details on methodology, visit: Where Millennials Can and Can’t Actually Afford to Buy Homes.

Best States for Millennials to Buy a Home

1. West Virginia

  • Median list price: $150,000
  • Estimated time to save for a down payment: 2.5 years
  • Monthly mortgage payment: $693

2. Ohio

  • Median list price: $154,900
  • Estimated time to save for a down payment: 2.5 years
  • Monthly mortgage payment: $704

3. Arkansas

  • Median list price: $164,900
  • Estimated time to save for a down payment: 2.7 years
  • Monthly mortgage payment: $757

4. Indiana

  • Median list price: $167,000
  • Estimated time to save for a down payment: 2.7 years
  • Monthly mortgage payment: $757

5. Iowa

  • Median list price: $169,000
  • Estimated time to save for a down payment: 2.8 years
  • Monthly mortgage payment: $766

Worst States for Millennials to Buy a Home

1. Hawaii

  • Median list price: $599,000
  • Estimated time to save for a down payment: 9.8 years
  • Monthly mortgage payment: $2,584

2. California

  • Median list price: $499,950
  • Estimated time to save for a down payment: 8.2 years
  • Monthly mortgage payment: $2,168

3. Massachusetts

  • Median list price: $419,900
  • Estimated time to save for a down payment: 6.9 years
  • Monthly mortgage payment: $1,833

4. Colorado

  • Median list price: $408,068
  • Estimated time to save for a down payment: 6.7 years
  • Monthly mortgage payment: $1,780

5. Oregon

  • Median list price: $352,000
  • Estimated time to save for a down payment: 5.8 years
  • Monthly mortgage payment: $1,551

Additional Study Insights

  • According to the U.S. Census Bureau, Texas, Washington and Colorado are the top three states where millennials are moving, though none top the list of places to buy.
  • The three cities losing the most millennials are New York, San Diego and Miami.
  • The Bay Area continues to be a hot spot for millennials, with San Francisco and Oakland both in the top 10 cities millennials are moving, despite the high cost of housing.

About GOBankingRates

GOBankingRates.com is a personal finance news and features website dedicated to helping visitors live a richer life. From tips on saving money, to investing for retirement or finding a good interest rate, GOBankingRates helps turn financial goals into milestones and money dreams into realities. Its content is regularly featured on top-tier media outlets, including MSN, MONEY, AOL Finance, CBS MoneyWatch, Business Insider and dozens of others. GOBankingRates specializes in connecting consumers with the financial institutions and products that best match their needs. Start your journey toward a rich mind and full wallet with us here.

Contact

Kim Dahlgren, Media Relations
GOBankingRates.com
kimd@consumertrack.com
(310) 297-9233 x138

War of the Words: Millenials vs. Baby Boomers

Source: Statista

Born out of the social and economic situation in which they grow up, every generation has a different outlook on life. To see an example of this, one only needs to compare Baby Boomers (born between 1946 and 1964) and Millennials (between early 1980’s and late 1990’s). A recent global survey by Ipsos Mori has revealed the differences in perception of both generations – not exactly to the favor of the younger group.

As our inforgraphic shows, the words most associated with Millennials are ‘tech-savvy’, ‘materialistic’, ‘selfish’, ‘lazy’ and ‘arrogant’. In contrast, Baby Boomers can boast ‘respectful’, ‘well-educated’ and ‘ethical’. More damning still, even Millennials themselves agreed with the judgement. 44 percent said their cohort was materialistic, 37 percent agreed they were selfish and 33 percent admitted that in general, their generation was lazy.

Infographic: War of the Words: Millenials vs. Baby Boomers | Statista You will find more statistics at Statista

Ellie Mae Millennial Tracker Shows Days to Close at Its Shortest in Nearly a Year

Overall Time to Close a Loan Drops to 44 Days in February, with Decreased Days to Close Across All Loan Types

Pleasanton, CA – April 05, 2017 (BUSINESS WIRE) In February, time to close all loans for Millennial borrowers decreased to 44 days, the shortest average time to close since March 2016, according to the latest Millennial Tracker™ released by Ellie Mae® (NYSE:ELLI), a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. The average time to close a purchase loan for Millennials decreased from 46 days in January to 42 days in February, while time to close a refinance loan also decreased to 52 days in February, down from 58 days the month prior. Similarly, the average time to close FHA loans decreased from 47 days in January to 43 days in February. Average time to close VA loans decreased dramatically from 57 days to 41 days.

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As U.S. housing trends toward a buyer’s market, purchases accounted for 86 percent of all closed loans for the month of February, a slight uptick from 84 percent in January, while refinances fell two percentage points to 14 percent of all loans to Millennial borrowers. Share of conventional loans stayed steady from the month prior, representing 61 percent of loans, while FHA loans increased to 36 percent in February, up from 35 percent the month prior.

FICO scores across all loan types continued to fall in February to an average of 723, down from 724 in January and their peak of 726 from August through October 2016. For purchases, the average FICO score was 747 for a conventional loan, 690 for an FHA loan and 745 for a VA loan.

“Purchase loans are increasing, indicating that Millennials are continuing to enter the first-time homebuyer market,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae. “In addition, we saw time to close decrease from 49 days in January to 44 days in February, which indicates that our lenders are seeing more efficiency as they embrace mortgage automation.”

In February, the hottest housing market for Millennials was in the state of Texas. The top markets by percentage of Millennial loans closed in the state included Odessa, Midland and Beaumont-Port Arthur.

Ellie Mae® (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. The Ellie Mae Millennial Tracker is an interactive online tool that provides access to up-to-date demographic data about this new generation of homebuyers. It mines data from a robust sampling of approximately 75 percent of all closed mortgages dating back to 2014 that were initiated on Ellie Mae’s Encompass® all-in-one mortgage management solution. Given the size of this sample and Ellie Mae’s market share, it is a strong proxy of Millennial mortgage indicators across the country. Searches can be tailored by borrower geography, age, gender, marital status, FICO score and amortization type.

For more information, visit elliemae.com.

ABOUT THE ELLIE MAE MILLENNIAL TRACKER

The Ellie Mae Millennial Tracker focuses on Millennial mortgage applications during specific time periods. Ellie Mae defines Millennials as applicants born between the years 1980 and 1999. New data is updated on the first Monday of every month for two months prior.

The Millennial Tracker is a subset of our Origination Insight Report, which details aggregated, anonymized data pulled from Ellie Mae’s Encompass origination platform. Additional information regarding the Origination Insight Report can be found at elliemae.com. News organizations have the right to reuse this data, provided that Ellie Mae, Inc. is credited as the source.

ABOUT ELLIE MAE

Ellie Mae (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Mortgage lenders of all sizes use Ellie Mae’s Encompass® all-in-one mortgage management solution, Mavent Compliance Service, and AllRegs research, reference and education resources to improve compliance, loan quality and efficiency across the entire mortgage lifecycle. Visit EllieMae.com or call (877) 355-4362 to learn more.

© 2017 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, the Ellie Mae logo and other trademarks or service marks of Ellie Mae, Inc. appearing herein are the property of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.

Contacts:

Ellie Mae, Inc.
Erica Harvill
(925) 227-5913
Erica.harvill@elliemae.com

or

Allison+Partners
Alexandra Gardell Kreuter
(646) 428-0618
EllieMae@allisonpr.com

Survey: Most Home Sellers Tried to Negotiate Real Estate Agent Commissions Last Year

Millennial Home Sellers Most Likely to Negotiate for Lower Commissions; Reluctant to Move to Areas Where Most People Have Differing Political Views

Seattle, WA – March 15, 2017 (BUSINESS WIRE) A majority of sellers last year tried to negotiate their listing agent’s commission to a lower price, according to a survey of 3,352 homebuyers and sellers across 11 major metropolitan markets conducted in December 2016 by SurveyGizmo and commissioned by Redfin (www.redfin.com), the next-generation real estate brokerage.

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Fifty-seven percent of sellers last year attempted to negotiate their agent’s commission, up from 52 percent in June 2016. The trend was partly driven by Millennial sellers, 66 percent of whom said in December they had attempted to negotiate with their agent.

Savings were prevalent among homebuyers, too. Nearly half (49 percent) said they got a refund, closing-cost contribution or other consideration from their agent worth $100 or more, up from 46 percent who said the same in June.

Following are six major findings:

1. Most sellers are negotiating for lower commissions.
2. Nearly three out of four sellers checked their online home-value estimates at least weekly before deciding to list their home for sale. One in five checked daily or near daily.
3. Rising mortgage interest rates haven’t deterred most homebuyers.
4. The top economic concerns are income inequality and affordable housing.
5. Many homebuyers, especially Millennials, are hesitant to move to an area where people tend to have different political views from their own.
6. Nearly half of minority homebuyers felt potential discrimination because of their race.

“Millennials are more data savvy than previous generations and naturally comfortable taking advantage of the relatively recent data transparency and technological innovations in the industry,” said Nela Richardson, Redfin chief economist. “This makes them more informed than any cohort the housing market has ever seen, and partly because of that, more willing to negotiate fees. Millennials’ hesitance to move to places where people have different political views suggests that our already deeply divided nation could become even more geographically segregated by ideology. As Millennials age into peak home-buying years, we will continue to see their preferences reflected not only in how homes are bought and sold, but also the makeup of cities and neighborhoods across the country. This carries big implications for the future of our political parties and electoral outcomes.”

For the full report including more findings, charts and a detailed methodology, click here.

About Redfin

Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry’s lowest published error rate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $40 billion in home sales through 2016.

Contacts

Redfin Journalist Services:
Keena Bean
(917) 822-5087
press@redfin.com

Home Purchases by Millennials Increased in January, According to Latest Ellie Mae Millennial Tracker

Pleasanton, CA – March 1st 2017 (BUSINESS WIRE)–Mortgages to millennial borrowers for new home purchases continued their ascent in January, accounting for 84 percent of closed loans, according to the latest Ellie Mae Millennial Tracker™ report. In December, 82 percent of closed mortgages were for new home purchases, up from 77 percent from August through November.

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FHA loans remained attractive among millennials, representing 35 percent of all loans closed in January, a slight uptick from 34 percent in December. This is significantly higher than the Ellie Mae January Origination Insight Report data which showed FHA loans represented 21 percent of closed loans in the month.

FICO scores across all loan types fell slightly in January to an average of 724 from their peak of 726 from August through October. For purchases, the average FICO score was 748 for a conventional loan, 690 for an FHA loan and 734 for a VA loan.

“As the purchase market heats up, we will continue to watch the FHA purchase trend amongst millennials,” said Joe Tyrrell, Ellie Mae’s executive vice president of corporate strategy. “It is not surprising to see millennial borrowers leverage FHA loans because they typically offer lower down payments and lower average FICO score requirements than conventional loans. As more millennials enter the market, we expect to see the popularity of FHA loans continue to increase.”

Across all loan types, it took millennials an average of 49 days to close on their loans in January, a day longer than in November and December. Purchases took an average of 46 days and refinances took an average of 58 days.

In January, the hottest housing markets for millennials were in the Southeast. The top markets by percentage of millennial loans closed included Enterprise, Ala. and Owensboro, Ky.

Ellie Mae® (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. The Ellie Mae Millennial Tracker is an interactive online tool that provides access to up-to-date demographic data about this new generation of homebuyers. It mines data from a robust sampling of approximately 75 percent of all closed mortgages dating back to 2014 that were initiated on Ellie Mae’s Encompass® all-in-one mortgage management solution. Given the size of this sample and Ellie Mae’s market share, it is a strong proxy of millennial mortgage indicators across the country. Searches can be tailored by borrower geography, age, gender, marital status, FICO score and amortization type.

For more information, visit elliemae.com.

About the Ellie Mae Millennial Tracker

The Ellie Mae Millennial Tracker focuses on millennial mortgage applications during specific time periods. Ellie Mae defines millennials as applicants born between the years 1980 and 1999. New data is updated on the first Monday of every month for two months prior.

The Millennial Tracker is a subset of our Origination Insight Report, which details aggregated, anonymized data pulled from Ellie Mae’s Encompass origination platform. Additional information regarding the Origination Insight Report can be found at elliemae.com. News organizations have the right to reuse this data, provided that Ellie Mae, Inc. is credited as the source.

About Ellie Mae

Ellie Mae (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Mortgage lenders of all sizes use Ellie Mae’s Encompass® all-in-one mortgage management solution, Mavent Compliance Service, and AllRegs research, reference and education resources to improve compliance, loan quality and efficiency across the entire mortgage lifecycle. Visit EllieMae.com or call (877) 355-4362 to learn more.

© 2017 Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, the Ellie Mae logo and other trademarks or service marks of Ellie Mae, Inc. appearing herein are the property of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.

Contacts

Ellie Mae, Inc.
Erica Harvill
(925) 227-5913
Erica.harvill@elliemae.com

or

Allison+Partners
Alexandra Gardell Kreuter
(646) 428-0618
EllieMae@allisonpr.com