Millennials Prefer Value Home Investments Versus Affordability, QuoteWizard Study Finds

Rhea-AI Summary

QuoteWizard, a LendingTree company, released a report analyzing millennial homeownership trends across the U.S. from 2013 to 2019. The report reveals that almost half of the states experienced growth in millennial ownership, with significant correlations to home value and mortgage balance. Notably, states with higher median home values saw increased homeownership rates, indicating a focus on home value investments rather than affordability. Median home values rose by 27%, while median incomes for millennials grew by only 17%. The report identified Vermont, Oregon, and Maine as top states for this demographic.

Positive

• 17 states showed increased millennial homeownership from 2013 to 2019.
• Correlation found between higher home values and increased millennial ownership rates.

Negative

• Median home values increased by 27% while median incomes only rose by 17%.

SEATTLE, Sept. 30, 2020 /PRNewswire/ -- QuoteWizard®, a LendingTree company, and one of the nation's leading online insurance marketplaces released a report on states where millennials are buying more homes. When comparing homeownership rates over the six-year period, QuoteWizard found that nearly half of all states saw some growth in millennial ownership, whereas the other half saw a decline.

The biggest correlating factor QuoteWizard found to reflect millennial homeownership growth is a differential type of metric that signals the quality of home investment. This differential of home value and mortgage balance in each state can be viewed as a value metric that shows a willingness to incur mortgage debt for a value investment in a home. The differential in home value and mortgage balance metric showed a strong correlation in the top growing states for millennial homeownership.

Visit the full report here, https://quotewizard.com/news/posts/where-millennials-are-buying-more-homes

Key Findings:

• The 17 states with the largest increases in millennial homeownership are also states in the top half of most expensive median home values. Affordability isn't driving under-35 homeownership.
• Eight of the top 10 states for millennial homeownership are in the top half in median home value compared to outstanding mortgage debt, indicating that millennial homeownership is driven by value investment versus affordability.
• Median home values increased by 27% from 2013 to 2019, while median income of people aged 25-34 only increased by 17%.
• Above-average income growth from 2013 to 2019 in states with higher rates of millennial homeownership is a common factor.

Methodology

QuoteWizard analyzed Census income data in each state from 2013 to 2019, to see if there was a  correlation between millennial homeownership and income growth. We also looked at Census data to see which states have seen the biggest changes in millennial (under 35 years old) homeownership from 2013 to 2019.

Rank	State	2013 Ownership %	2019 Ownership %	Ownership % Change	Difference Home Value vs. Outstanding Mortgage Debt
1	Vermont	7.9	9.5	20.3%	$63,359
2	Oregon	7.8	9.3	19.2%	$125,003
3	Maine	8.1	9.5	17.3%	$99,246
4	Wyoming	12.8	14.7	14.8%	$50,686
5	Massachusetts	7.6	8.7	14.5%	$156,178
6	New Jersey	6.7	7.6	13.4%	$89,711
7	Washington	9.7	10.8	11.3%	$130,119
8	Tennessee	10	11.1	11.0%	$13,720
9	Pennsylvania	9	9.9	10.0%	$31,142
10	Florida	6.7	7.3	9.0%	$49,677
11	Hawaii	5.8	6.3	8.6%	$273,037
12	New York	7.5	8.1	8.0%	$67,690
13	Ohio	10.1	10.9	7.9%	$19,661
14	New Hampshire	8.2	8.8	7.3%	$101,346
15	Michigan	10.4	11.1	6.7%	$22,033
16	Rhode Island	7.8	8.2	5.1%	$98,423
17	Indiana	11.8	12.4	5.1%	$28,133
18	Alabama	10.2	10.7	4.9%	-$7,002
19	Colorado	11.4	11.9	4.4%	$122,187
20	North Carolina	9.5	9.9	4.2%	$27,380
21	Alaska	12.3	12.7	3.3%	$102,833
22	Idaho	11.7	12	2.6%	$103,007
23	South Carolina	9.7	9.9	2.1%	$10,641
24	Connecticut	7.7	7.8	1.3%	$19,872
25	Virginia	9.6	9.7	1.0%	$21,803
26	Missouri	11.9	12	0.8%	$24,155
27	Iowa	13.2	13.3	0.8%	$15,006
28	Wisconsin	10.8	10.8	0.0%	$52,811
29	Georgia	9.9	9.8	-1.0%	$18,414
30	Kentucky	11.1	10.9	-1.8%	$21,915
31	Nevada	11	10.8	-1.8%	$64,988
32	Illinois	10.3	10.1	-1.9%	$7,075
33	Maryland	9.6	9.4	-2.1%	$37,980
34	Nebraska	14	13.7	-2.1%	$30,181
35	South Dakota	14.2	13.8	-2.8%	$43,211
36	New Mexico	10	9.7	-3.0%	$36,129
37	West Virginia	9.7	9.4	-3.1%	-$11,464
38	Oklahoma	12.6	12.2	-3.2%	-$9,411
39	Texas	11.3	10.9	-3.5%	$21,976
40	Mississippi	10.1	9.7	-4.0%	$8,093
41	Kansas	12.3	11.8	-4.1%	$3,063
42	Minnesota	13.1	12.5	-4.6%	$64,526
43	Arizona	10.1	9.6	-5.0%	$54,641
44	Arkansas	11	10.4	-5.5%	$117
45	North Dakota	16.4	15.5	-5.5%	$47,226
46	California	8.1	7.6	-6.2%	$186,909
47	Montana	10.7	10	-6.5%	$61,389
48	Utah	16.3	15.2	-6.7%	$134,887
49	Louisiana	12.2	11.2	-8.2%	-$4,251
50	Delaware	9.8	8.9	-9.2%	$50,773

About QuoteWizard QuoteWizard (quotewizard.com) is an insurance comparison marketplace for consumers looking to save on insurance. QuoteWizard provides consumers with direct access to thousands of qualified agents in all 50 states, as well as major carriers, who offer personalized quotes and the opportunity to save up to 40% on auto, home, health, and life insurance. Agents and carriers, in turn, benefit from millions of highly qualified leads, calls, and traffic to their site. Based in Seattle, QuoteWizard was founded in 2006.

For more information, go to quotewizard.com, like our Facebook page and/or follow us on Twitter @quotewizard.

About LendingTree LendingTree (NASDAQ: TREE) is the nation's leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student refinances, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring, and recommendations to improve credit health. My LendingTree proactively compares consumers' credit accounts against offers on our network and notifies consumers when there is an opportunity to save money. In short, LendingTree's purpose is to help simplify financial decisions for life's meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc.

Media Contacts:

Emily: emily@quotewizardnews.com

Nathan: nathan@quotewizardnews.com

 

Related Links

https://quotewizard.com
https://quotewizard.com/news/posts/where-millennials-are-buying-more-homes 

View original content:http://www.prnewswire.com/news-releases/millennials-prefer-value-home-investments-versus-affordability-quotewizard-study-finds-301141618.html

SOURCE QuoteWizard

FAQ

What did the QuoteWizard report reveal about millennial homeownership in 2020?

The report showed that nearly half of the states saw growth in millennial homeownership from 2013 to 2019, with a focus on home value investments rather than affordability.

Which states had the largest increases in millennial homeownership according to QuoteWizard?

Vermont, Oregon, and Maine were identified as top states for increases in millennial homeownership.

How did median home values change from 2013 to 2019 for millennials?

Median home values increased by 27% from 2013 to 2019.

What correlation did QuoteWizard find regarding millennial homeownership?

The report found a strong correlation between higher home values and increased millennial homeownership rates.

How much did median income for millennials increase from 2013 to 2019?

Median income for millennials aged 25-34 increased by 17% during that period.