Property managers in Denver say that if a person can afford to purchase a house in New York, they will definitely be able to afford to buy a house in any other city. Millenials aged 18 to 34 who are residing in New York and San Francisco and other hot job markets hardly earn enough money to actually purchase homes, they would rather rent one.
Home prices have increased over the years whereas incomes have remained the same. Millenials would rather rent apartments for quite some time before they buy their first homes. According to a real estate firm analysis, the average income of a first time buyer is about $54,350. This is nearly the same amount earned by millennially since the late 1970s after adjusting for inflation.
After inflation, the median home prices for millenials over the same period has risen to 42%, approximately $140,330. A typically 33 years old person who plans to purchase a home would spend 2.6 times his income on the property. Compared to New York, San Francisco and leading markets that amount is actually a bargain. Property manager in Denver noted that the price to income ratio is high in places like New York and San Francisco, most people are forced to keep on renting .
Metro areas that have plenty of available jobs but median home values exceed the average income include: (Median price to income ratio) Los Angeles 8.75, San Francisco 8.56 San Diego 7.42 New York 5.71 Boston 4.89 Seattle 4.78 Portland 4.56 Miami 4.4 Denver 4.32.