Dear millennials, if you’re thinking about buying a home in Los Angeles, good luck.
Only 17.8 percent of millennials in La La Land have been able to afford a home purchase, far below the 32 percent national average, a new study found. The remaining 82.2 percent of Angelenos under the age of 35 are renters.
By contrast, in the Ogden-Clearfield area of Utah, slightly more than half of millennials own homes. Ogden’s metro area came in first place out of the 135 cities surveyed in the study from rental website Abodo.
With median home prices at $560,000, and the average income of millennials in L.A. trailing other major cities like San Francisco, young adults would have to save for an average of more than 32 years to afford a 20 percent down payment of $112,033, the study found. Abodo calculated this estimate based on the assumption that potential buyers set aside 15 percent of their earnings a month, Curbed reported.
The study does not state the average income of L.A. millennials, which it used for its calculations. [Curbed] — Subrina Hudson