6 Cities Where Millennial Renters Are Priced Out of Homeownership

Although homebuying remains financially out of reach for many millennial renters, housing affordability for this group has finally stopped getting worse.

A new Zillow report found that the share of renter households headed by someone ages 29 to 43 who could afford to buy a typical home rose nominally from 2023 to 2024, although the 0.2% change might be more considered stable than rising.

Even then, those gains haven’t been evenly distributed. In many of the nation’s largest metro areas, the vast majority of millennial renters remain unable to afford homeownership. In the priciest markets, fewer than 7% of renter households of typical homebuying age can afford a home without spending more than 30% of their income on monthly mortgage payments, assuming a 5% down payment.

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6 Cities Where Millennial Renters Can't Buy a Home

Here are the six U.S. cities where millennial renters are least likely to be financially ready to buy a home, according to the Zillow analysis — ranked by their share of homebuying-age renter households that are ownership-ready.

1. San Diego: 4.1%

2. Los Angeles: 4.2%

3. Riverside, California: 4.3%

4. Providence, Rhode Island: 4.5%

5. San Jose, California: 5.8%

6. Sacramento, California: 6.9%

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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