Photo: Nicolas Raymond/Flickr
Compared to the rest of the nation, the Bay Area is (unsurprisingly) on the lower end of the Millennial home buying spectrum. But ABODO’s latest report found that 20.5 percent of Bay Area Millennials are buying homes, a number that seems shockingly high considering how expensive the city is reputed to be. Don’t forget, San Francisco was the birthplace of avocado toast.
Adobo pulled data from the US Bureau 2015 American Community Survey, with a focus on those in the 18 to 35 age range — the Millennial sweet spot. They analyzed 45 regions with the highest percentages of Millennials in the nation.
In San Francisco, Oakland and Hayward, 20.5 percent of Millennials own homes, while nearby San Jose, Sunnyvale, and Santa Clara (Silicon Valley territory) clocked in at 20.2 percent.
Both metro areas made the bottom 10, although Los Angeles, Long Beach and Anaheim are home to the fewest young homeowners in the nation at 17.8 percent. Urban Honolulu ranked second-worst at 18.3 percent, and San Diego and Carlsbad came in third at 19.8 percent.
Ogden and Clearfield, Utah, where a whopping 51 percent of Millennials own homes, fared the best. For comparison, the national average is 31.2 percent.
What does all of this data add up to? Well, consider that homeownership has been decreasing since 2005, long before Millennials were even out of high school. From 2005 to 2015, that age range has seen an ownership decrease of 6.4 percent. Adobo notes that certain cities have been hit harder, such as San Jose, Sunnyvale and Santa Clara, which saw a decrease of 34.8 percent — the largest dip in the country.
Adobo also analyzed how long a Millennial would have to save up for a down payment in each region based on the local median income. In San Francisco, Oakland and Hayward, where the average salary is $143,563, it would take a Millennial resident 28.7 years to put a 20 percent down payment on a home.
How do you make sense of these two seemingly disparate figures? By taking into account the insane amounts of wealth pumping out of Bay Area tech startups like Facebook, Google and Apple.