Real Estate News

Why millennials might prefer to live in Texas

Published: 01 May 2017

As many sources have shown, much of what millennials look for in the housing market is affordability and a proximity to jobs. While it's easy to guess how expensive some markets might be, it's more difficult to estimate which areas might be most appealing to this demographic.

There's an answer to where the ideal place for millennials to relocate to could be: Austin, Texas. Last year, the National Association of Realtors ranked the city as number one among 100 other candidates across the country for being a good fit for millennials. Some of the factors included the local job scene as well as home affordability. 

"An overwhelming majority of young renters recently said they eventually want to buy a home," the organization's chief economist, Lawrence Yun, said. "As long as new and existing-home supply keeps up to meet demand and holds prices from rising too quickly, these identified areas are poised to lead the way in helping millennials realize their American Dream of becoming a home owner."

On the surface, this makes sense. Not only is Austin historically attractive to younger residents, it seems to be at balance between value and location. However, local millennials are also apparently doing better financially than many of their counterparts in other cities.

JLL Dallas Research made this argument using data showing the "earning power" of this age bracket around the U.S. in general. Compared to much of the country, the residents of Texas cities including not just Austin but Dallas, Houston and San Antonio as well, tend to have more money than the national average. This doesn't mean the general salary will be higher, but that the millennials in these places will have more fluid cash that makes it "feel like" their income is higher. 

The source compared this to hotspots like Los Angeles and said there was a lower dollar value in these areas.