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Places Where Americans Live the Most Balanced Lifestyles

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

As Americans, we’re often focused on status markers, like the amount of money we make, but research indicates that time we spend with people we care about, good health and income equality are some of biggest factors that lead to happiness. It’s not just how much we earn, it’s what we have to do to earn it, what we get in exchange for it and whether we have the time and health to enjoy our friends and family.

In other words, a balanced life.

To figure out where people are most likely to find that kind of balance, we compared seven measures in the 50 biggest metropolitan areas of the U.S.

We looked at the following (full methodology below):

    • Average commute times
    • How much of their incomes residents spend on housing
    • How many hours people work compared to how much they earn
    • Local income inequality
    • How many people are in very good or excellent health
    • Whether they get enough sleep at night
    • How local prices for typical consumer goods and services (excluding housing) compare with the national average

Below are the places that ranked highest — and lowest.

Places with the most balanced lifestyles

For clarity, we used the name of the major city in a metro area (i.e., Grand Rapids, instead of Grand Rapids-Wyoming-Muskegon, Mich.)

1. Grand Rapids, Mich.

Residents of Grand Rapids work a little harder for their money than those at other top cities on our list, but that money seems to work a lot harder for them, too. Generally, housing only costs 18% of income, commutes are under 22 minutes, prices on consumer goods are about 5% lower than the national average, and income inequality is relatively low. Maybe that’s why 56% of the population are reported to be in very good health (the ninth highest), even though 14 other cities have fewer sleep-deprived citizens. Of course, we might expect denizens to be made of hearty stock, given all the opportunities for outdoor activity for those who can make it through the notoriously harsh winters.

Score: 83 (out of 100)

2. Salt Lake City

Another city with a vibrant outdoor culture, Salt Lake City takes the number two spot with a score of 81. The key seems to be the widespread prosperity: Salt Lake City has the second-lowest income equality of any metro we reviewed, which is especially impressive considering the median income was $69,490 in 2016, considerably more than the national median of $55,322. And it only takes an average of 22 minutes to commute to those high-paying jobs (about the same as Grand Rapids), where workers spend about an hour less a week than average Americans. Prices for goods and services are about on par with the national average, but Salt Lakers spend 20% of their income on housing — about 1% less than people in the other cities we reviewed. Almost 57% of the population are reported to be in very good health, and more than two-thirds report getting at least seven hours of sleep a night.
Score: 81

3. Minneapolis

The Twin Cities are home to more people in very good or excellent health than anywhere else on our list. Maybe it’s because they get so much rest; only four other places report lower rates of sleep-deprived citizens. Income inequality is a touch higher than in Grand Rapids and Salt Lake (but still the fifth lowest on our list) and the average commute is about three minutes longer, but residents get more money for their time. Housing costs about 20% of the median income, and goods are priced about 4% lower than the national average.
Score: 80

4. Raleigh, N.C.

The Research Triangle Area places fourth on our list, thanks to a very healthy (third on our list) and well-rested (sixth for fewest sleep-deprived citizens) population. Commute times are fair at about 26 minutes on average, as is the percentage of median income that goes to cover the median housing costs (20 percent). In terms of income inequality, Raleigh also runs middle of the pack among cities we reviewed, ranking 23rd, but that’s a big jump from the first three cities on list, which ranked third, second and fifth. Moreover, Raleigh ranks 18th for both the amount they earn for how long they work and the cost of consumer goods compared to the national average.
Score: 71

5. Kansas City, Mo.

A healthy showing on average commute times (under 23 minutes), income inequality (8th lowest on our list) and share of income that goes towards housing (19%) sends KCMO to the fifth spot on our list. Kansas City ranks in the top half of our list for citizens who aren’t sleep deprived (22nd), percentage of the population in very good or excellent health (19th) and income earned compared to hours worked (24th). The place where they rank lower than more than half the cities on our list is in local prices compared to national averages (27th), but they should still expect to pay about 3.7 percent less than most other Americans for goods and services.
Score: 68

Places with the least balanced lifestyles

50. New York

It probably doesn’t surprise anyone that New Yorkers endure the longest average commute times (over 35 minutes), and pay the highest prices for goods and services of America’s 50 largest metro areas. It also sits at the 49th slot for income inequality. While New York has one of the highest median housing costs (San Francisco is the most expensive), it’s somewhat offset by higher median household income. But not too far offset; residents of only three other cities spend a larger portion of their income on housing. Lending credence to the famous epithet of “the city that never sleeps,” 41% of New Yorkers report being sleep deprived (Detroit is the most sleep-deprived, with just over half of residents reporting fewer than seven hours of sleep a night). With 31% of the population reported in good or excellent health, New York ranks 35th out of 50 in that area. One bright spot is placing 8th for the amount of money New Yorkers earn for the number of hours they work. Sadly, that didn’t help New York’s score much.

Score: 20

49. Miami

Not to be outdone, Miami also ranks dead last in two areas we measured: The cost of housing relative to income and income inequality. Miami fares poorly in other areas, too, like the number of hours worked relative to the amount of money earned (43th), average commute time (41st), and prices for goods and services relative to the national average (39th). It runs in the middle of the pack in other two categories, coming in 26th for both the percentage of people in very good or excellent health and the number of people getting at least seven hours of sleep a night.

Score: 22

48. Philadelphia

Philly doesn’t rank last in any area, but it falls in the bottom ten for all but two categories: Average commute time (40th), income equality (41st), very good health (45th), enough sleep (47th) and consumer prices (47th). It does slightly better in the percentage of income that goes toward housing (35th), but has a stronger showing in the number of hours citizens work relative to how much they earn (15th).
Score: 23

47. Los Angeles

Citizens of LA earn a lot for the hours they work, but that doesn’t help too much given the high price of housing — only two other cities spend more of their incomes on housing (San Diego and Miami). The cost of goods and services are the highest outside of New York City and San Francisco. Add to that high income inequality (ranked 45th), that famously horrific commute (45th) and poor health (42nd) to get a low score.
Score: 24

46. Tampa, Fla.

Another Florida city in the bottom five, Tampa’s biggest flaw is the ratio of hours worked to income earned (ranked 45th). Tampa doesn’t rank that low elsewhere, but it doesn’t rank high in anything, either; its top showing is a rank of 31 in the percentage of people who get at least seven hours of sleep a night. Average commutes clock in over 27 minutes (35th), and only half the population are reported to be in good or excellent health (32nd). The city ranks even lower for the prices of goods and services (40th) and the percentage of income that goes toward housing (41st).
Score: 26

Methodology:

The top 50 Combined Statistical Areas (CSAs) are ranked on a 100-point scale on the following seven measures:

  1. Average commute time, as reported in the 2016 American Community Survey (“ACS”)
  2. Percentage of income spent on housing, calculated as (the median monthly housing cost) / (median household income / 12 months), as reported in the 2016 ACS
  3. The number of hours worked relative to income earned, calculated as (the mean average number of hours worked) / (divided by the mean monthly household income / 12 months), as reported in the 2016 ACS
  4. Gini coefficient to represent income inequality, as reported in the 2016 ACS
  5. Price index, calculated as (Price Index for Goods + Price Index for Other) / (2), as reported by the Bureau of Economic Analysis in the “Real Personal Income for States and Metropolitan Areas, 2015” release
  6. Share of the population in very good health, calculated as (percentage of the population in very good health) + (percentage of the population in excellent health), as reported in the 500 Cities Project (2016) from The Centers for Disease Control and Prevention (“CDC”)
  7. Share of the population who gets fewer than seven hours of sleep a night, as reported by the CDC. Data was not available for the following metro areas, so the unweighted average for available areas in the same state was used: Greenville, S.C. and Harrisburg, Pa.

The sum of all ranks was then divided by seven, for a maximum possible score of 100 and a lowest possible score of zero.

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Kali McFadden
Kali McFadden |

Kali McFadden is a writer at MagnifyMoney. You can email Kali at kali.mcfadden@magnifymoney.com

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College Students and Recent Grads, Featured

Where Students Can Cover College Tuition with a Part-Time Job: Study

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Students Studying Learning Education

Affordability was a major factor when 19-year-old Bintou Kabba was considering colleges to attend after high school.  She enrolled at CUNY Lehman, a four-year public university in her native Bronx, N.Y. The 10-minute commute from her home, where she lives with her parents and six siblings, was part of the allure. But the low cost of tuition was essential for Kabba, an ambitious student with dreams of becoming a neonatal gynecologist but without the financial means to afford a pricey university. Most CUNY Lehman students pay just $2,374 out of pocket for a year of schooling.

But before she began classes, Kabba needed a job. “I was broke and I needed money so badly,” she told MagnifyMoney. So, she joined the ranks of so-called “working learners” attempting to counter the costs of college with part-time jobs. About 40 percent of undergraduates and 76 percent of graduate students work at least 30 hours a week throughout the school year, according to the Georgetown Center on Education and the Workforce.

As college costs have skyrocketed in recent years, the old adage “Work your way through college” has become increasingly out of touch with reality. Students who work rarely earn enough to truly cover the costs of their education.

MagnifyMoney sought to find out which colleges are still affordable enough for working students to afford on part-time wages. In a new study released Nov. 9, we found a student earning the federal minimum wage ($7.25/hr) would have to work full-time — nearly 44 hours per week — to afford the average annual net tuition at a four-year public institution today.

We then wanted to see how far a student working 20 hours per week at their state’s minimum wage could get toward covering their net tuition. Their post-tax annual earnings were compared with the net tuition price at more than 2,500 public and private non-profit institutions.

Key findings:

  • We found it is impossible to cover the tuition gap at most four-year schools, both private and public.
  • Students can afford to cover their net tuition costs with a part-time job at only 50 out of 645 (7.75%) of four-year public institutions. Students can feasibly cover net tuition costs with a part-time job at just 24 out of 1,208 private nonprofit four-year institutions (2%).
  • Two-year public institutions were significantly more affordable — it was feasible for part-time working students to cover net tuition at 287 out of 656  two-year public schools (43.75%). On average, a student earning the federal minimum wage would only need to work roughly 25 hours per week to cover net tuition costs at a two-year public institution.
  • Less than 5% of private two-year and private four-year institutions are affordable enough for a part-time working student, MagnifyMoney found.

The cost of going to college has outpaced the rise in wages by a staggering amount over the last decade. When faced with a gap in college costs and earnings, families typically have just one place to turn – student loan debt.

Kabba wanted to avoid student debt at all costs. That drove her decision to enroll at CUNY Lehman. The school is the fourth most affordable four-year public college on our list. Earning the New York state minimum wage of $9/hour, a part-time working student could pocket more than enough to cover their expenses.

Still, working long hours to cover college expenses is far from the ideal college experience.

Research has shown demanding work schedules can all too easily conflict with student’s academic performance. Georgetown’s Center on Education and the Workforce warns against any job that demands more than 30 hours per week from a full-time student.

On a tip from her high school counselor, Kabba landed a $10/hour gig soliciting telephone donations at a midtown-New York charity. During her freshman year, she worked 20 hours most weeks. With a full course load to juggle as well, it wasn’t long before Kabba started to feel the pressure of conflicting responsibilities.

“It was just too much,” she said. To get to work each day, she took a 45-minute train ride from the Bronx to midtown. Rather than working around her class schedule, she had to work her class schedule around her job, because the charity had strict guidelines on when workers could call donors. By the end of her freshman year, her grades started to reflect her strain.

“I decided I’d rather be unemployed and actually do well in school,” says Kabba. She quit before her sophomore year.

Not long after leaving her inflexible charity job, Kabba found another solution. Through a special program offered at CUNY Lehman, she landed a job on campus that paid $9/hour and only required 10 hours of work per week. Reducing her hours and pay meant smaller paychecks, but a better chance she’ll earn the grades she needs to achieve her goal of going to medical school. “It’s on campus and it’s convenient,” she said.

Behind the data

To make our findings more exact, we used the minimum wage of the state in which each school resides to determine the annual earnings of working students. Next, we analyzed data from the National Center for Education Statistics to determine the net tuition costs of each school. The net price is more accurate than a college’s sticker price because it factors in financial aid, scholarships and grants. The net price is what students and families actually pay out of pocket.

We stuck to a 20-hour part-time work schedule because we thought it was unrealistic to assume students could juggle a full-time course schedule and a full-time job. In fact, Georgetown recommends students work no more than 30 hours per week in order to maintain good grades in college.

public-nonprofit-4-year-finalpublic nonprofit 4 year final

public nonprofit 2 year final

 

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Tips for working college students

It is virtually impossible to “work your way through school” anymore. The old adage just doesn’t apply to today’s college students, who are paying more than ever for college tuition and can’t feasibly cover their expenses with part-time income alone.

However, there are still benefits to working while in college. Here are some tips on how to maximize savings as a working student.

How to save on college costs with a part-time job

  1. Start small. Try going to a lower cost community college and transferring your credits to a larger institution later. As our study shows, it’s possible for students working part-time to cover net tuition at the majority of two-year public institutions 43.75%). By covering tuition and fees with a part-time job at a two-year school, you can reduce your need for financial aid by half and still graduate from a four-year institution.
  2. Work part-time at a campus job or through a work-study program. Jobs tied to campus are more likely to work around your course schedule and be flexible during unusually demanding times of year, such as quarterly exams and finals.
  3. Stay close to home. Not only will you save on tuition by enrolling at an in-state school, but if you are close enough to continue to live with your family while you’re studying, you could save big on housing expenses. If living at home means commuting by car or public transit for classes, factor in those additional costs.
  4. Don’t rely on student loan debt for expenses you can cover with part-time work. Save the student debt for tuition and other fees that are usually required in one lump-sum payment at the beginning of the semester. When it comes to extra expenses, like your trip to Key West for spring break, or moving to an off-campus apartment, lean on income earned from a part-time job. If you move off campus, you might find it is possible to afford rent (with support from roommates) with income from a part-time job.
  5. Choose your job wisely. If possible, find work in your area of study, which can give you an early jump start in the job market before you even graduate. If you have several years of job experience under your belt at graduation, you’ll be light years ahead of your peers graduating with a comparatively thin resume. Another study by Georgetown’s Center on Education and the Workforce found college students who worked or took internships while in college were more upwardly mobile after graduation and more likely to move into managerial positions.
  6. Take advantage of in-state tuition rates even if you are not a permanent state resident. Each state has its own residency requirements for students looking to qualify for in-state tuition rates, which can be significantly lower than out-of-state rates. Some states will allow students to qualify for in-state tuition if at least one of their parents has been a resident for at least one full year before the student enrolls. If the student is independent — meaning they do not receive financial assistance from a parent to attend college — most states require at least one year of residency in the state. There are other documentation requirements, which can be found at FinAid.org.
  7. Don’t sacrifice your studies for a paycheck. At a certain point, the financial benefits of working part-time might not be worth the additional stress and attention a job might demand. The majority of working students ages 16-29 work 20 hours or less per week. However, research has shown both working and non-working college students graduate with similar levels of student loan debt — 34% of working college students graduate with $25,000 or more in student loan debt, compared to 37% college students who don’t work while in school.
  8. Graduate early (or on time). Dragging out your time in college is a quick way to add thousands of dollars to your student debt load. And it happens more often than you might think. Only 40% of students graduate within four years of enrollment across all types of institutions, according to the Department of Education. Less than one-third of college students graduate on time at public institutions. Save additional tuition expenses by completing your degree in four years or less.

 

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Mandi Woodruff
Mandi Woodruff |

Mandi Woodruff is a writer at MagnifyMoney. You can email Mandi at mandi@magnifymoney.com

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Featured

MagnifyMoney: 2016 Housing Affordability Study

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Housing Affordability Study

As the cost of housing soars ever higher and household earnings remain stubbornly stagnant, how realistic is homeownership for young people today?

Saving up for a new home can feel like an endless slog for young working Americans. The upfront costs alone — the down payment, closing costs, property taxes, etc. — are enough to scare off prospective buyers who are struggling to make ends meet.

Just over one-third of Americans under age 35 owned homes as of mid-2016, down 12% from 2010, according to U.S. Census data. While homeownership rates fell across all age groups during that same period, none experienced a steeper drop-off than the under-35s.

MagnifyMoney wanted to figure out how realistic homeownership is for young Americans today — that is, how long it would take them to save up for a new home in their area if they started saving now.

Calculating Home Affordability

Our analysis revealed two different sets of buyers — those who can afford the cost of a new home in their area and those who cannot. Affordability was largely driven by a worker’s ability to qualify for a mortgage loan large enough to cover the cost of a median-priced home in their metro area. Given these two different cases, we used two methods to determine how long it would take these groups to save for a home.

For buyers who can’t afford a large enough mortgage:

We assumed that the borrower can spare 35% of their monthly income toward mortgage-related payments. Based on this amount and the current interest rates for a 30-year fixed-rate mortgage, we calculated the total mortgage that the borrower can afford to take.

We then took the mortgage amount they would qualify for and subtracted it from the cost of a median-priced home in their area to find the mortgage gap they need to fill. Then, we added other necessary upfront costs: 4.5% closing costs and a standard emergency cash reserve equal to one month’s mortgage payment.

We determined, based on the median income for their age, how long it would take to save that amount, assuming a 20% savings rate.

Example:

We estimate a 25 to 44 year-old homebuyer in Salinas, Calif., would reasonably qualify for a $275,385 mortgage. A median-priced home in Salinas, Calif., costs $750,000. So, she would have to save at least $474,615 to fill the mortgage gap. On top of that, she would pay another $33,750 in closing costs (assuming an estimate of 4.5%) and need to set aside a $1,274 emergency cash reserve.

In total, she would need to come up with $509,612 to be able to buy a home in her area. If she saved 20% of her income toward that goal, it would take her 46.75 years.

For buyers who can afford a large enough mortgage:

Once again, we assumed that the borrower can spare 35% of their monthly income toward mortgage-related payments. Based on this amount and the current interest rates for a 30-year fixed-rate mortgage, we calculated the total mortgage the borrower can afford to take.

We then determined how much they’d need to save for a 20% down payment. We added to that the cost of closing costs and a one-month mortgage reserve.

For example:

A median-priced home in Johnstown, Penn., costs $74,900. So this buyer would have to save at least $14,980 to cover a 20% down payment. On top of that, he would pay another $3,370 in closing costs (assuming an estimate of 4.5%) and set aside $1,370 in an emergency cash reserve.

In total, he’d need to save $19,720. Saving 20% of his income toward this goal, it would take him 1.85 years.

Key Findings

  • Get ready for the long haul: Of the 380 metro areas we analyzed, we found no place in America where a worker of any age group could realistically save up for a new home in less than a year.Across all 380 metro areas analyzed…
    • 45 to 65 year-olds would need an average of 4.69 years to save for a home.
    • 25 to 44 year-olds would need an average of 5.63 years to save for a home.
    • 15 to 24 year-olds would an average of 27.2 years to save for a home.
  • Where homeownership is completely out of reach:
    • In 20.79% of metros (79 out of 380), workers of all age groups wouldn’t be able to qualify for a mortgage loan large enough to cover the cost of a median-priced home.
    • 15 to 24 year-olds wouldn’t qualify for a mortgage loan large enough to cover the cost of a median priced home in 357 out of 380 metros analyzed (93.95%).
    • 25 to 44 year-olds wouldn’t qualify for a mortgage loan large enough to cover the cost of a median-priced home in 68 out of 380 metros analyzed (17.89%).
    • 45 to 65 year-olds wouldn’t qualify for a mortgage loan large enough to cover the cost of a median-priced home in 29 out of 380 metros analyzed (7.63%).

The least and most affordable metros for 25 to 44-year-olds

25-44-The-Most-Easiest-Places
25-44-The-Most-Difficult-Places

A closer look at the housing market for 25 to 44-year-olds:

  • The most affordable metro area: Johnstown, Penn., is the easiest place for 25 to 44 year-olds to save for a home. The key: Affordable housing is in abundance. A median-priced home in Johnstown is $74,900. With a goal of saving enough to cover a 20% down payment, closing costs, and a one-month mortgage payment reserve, the total amount workers would need to save is $19,720. Earning the median annual income for that area of $53,164, they would need just 1.85 years to save.
  • The least affordable metro area: Salinas, Calif., is the most difficult metro area for 25 to 44 year-olds dreaming of homeownership. Earning the median annual salary of $54,499 and looking at a median-priced home listed at $750,000, they would need a staggering 46.75 years to save up enough. The reason? On an annual household income of $54,499, a homebuyer would only realistically be able to qualify for a $271,000 30-year fixed-rate mortgage loan, leaving a half-million-dollar gap to fill.
  • Midwest is best: 9 out of the 10 most affordable metro areas are located in the Midwest, where housing prices are significantly lower compared to other regions. On average, it would take just 2.28 years for a 25 to 44 year-old to save for a home in the 10 most affordable metros.
  • California is where homeownership dreams go to die: 9 out of the top 10 most expensive metro areas for 25 to 44 year-old homebuyers are in California.
    • The average time needed to save for a home in the top 10 most expensive metro areas is a whopping 29.15 years.
    • It would take 25 to 44 year-olds at least three years to save for a home in 7.37% of metro areas.
    • It would take 25 to 44 year-olds between three and five years to save for a home in 53.16% of metro areas.
    • It would take 25 to 44 year-olds between five and 10 years to save for a home in 34.47% of metro areas.
    • It would take 25 to 44 year-olds more than 10 years to save for a home in 5.00% of metro areas.

The least and most affordable metros for 45 to 65-year-olds

45-65-The-Most-Easiest-Places
45-65-The-Most-Difficult-Places

A closer look at the housing market for 45 to 65-year-olds:

  • The most affordable metro area: Danville, Ill., is the easiest place for 45 to 65 year-olds to save for a home today. A median-priced home in Danville is $68,200. With goal of saving enough to cover a 20% down payment, closing costs, and a one-month mortgage payment reserve, the total amount workers would need to save is $18,012. Earning the median annual income for their age group in that area ($51,975), they would need just 1.73 years to save.
  • The least affordable metro area: Homeownership dreams don’t get any more realistic with age in Salinas, Calif. It is also the most difficult metro area for 45 to 65 year-olds dreaming of homeownership. Even though this age group earns a median income 22% higher than 25 to 44 year-olds in this area, it would still take them nearly three decades (28.98 years) to save up for a median-priced home of $750,000. On an annual household income of $70,368, a 45 to 65 year-old homebuyer would only realistically be able to qualify for a $377,567 30-year fixed-rate loan, leaving a massive gap to fill — even without including closing costs and a one-month mortgage reserve.
    • It would take 45 to 65 year-olds at least three years to save for a home in 16.32% of metro areas.
    • It would take 45 to 65 year-olds between three and five years to save for a home in 57.37% of metro areas.
    • It would take 45 to 65 year-olds between five and 10 years to save for a home in 23.16% of metro areas.
    • It would take 45 to 65 year-olds more than 10 years to save for a home in 3.16% of metro areas.
  • Midwest is best: 9 out of the 10 most affordable metro areas for 45 to 65 year-olds are also located in the Midwest, where housing prices are significantly lower compared to other regions.
    • On average, it would take just under three years (2.08) to save for a home in the 10 most affordable metros.
  • The California struggle: 9 out of the top 10 most expensive metro areas for 45 to 65 year-old homebuyers also are in California.
    • The average time needed to save for a home in the top 10 most expensive metro areas for this age group is a whopping 19.72 years.

The least and most affordable metros for 15 to 24-year-olds

15-24-The-Easiest-Places
15-24-The-Most-Difficult-Places

A closer look at the housing market for 15 to 24-year olds:

Of course, we don’t know many 15-year-olds who are shopping around for a single-family home these days, but U.S. Census Bureau data limited us to this age range. However, our findings still shine a light into the challenges facing the youngest homebuyers.

  • It would take 15 to 24 year-olds at least three years to save for a home in 0% of metro areas.
  • It would take 15 to 24 year-olds between three and five years to save for a home in 1.58% of metro areas.
  • It would take 15 to 24 year-olds between five and 10 years to save for a home in 23.42% of metro areas.
  • It would take 15 to 24 year-olds more than 10 years to save for a home in 75.00% of metro areas.
  • The most affordable metro area: Sheboygan, Wisc., is the easiest place for 15 to 24 year-olds to save for a home today. Although median-priced homes are relatively more expensive in Sheboygan ($134,900) than other inexpensive metro areas on this list, young workers there earn relatively higher salaries, which enables them to save more toward future home costs. With a goal of saving enough to cover a 20% down payment, closing costs, and a one-month mortgage payment reserve, the total amount workers would need to save is $33,877. Earning the median annual income for their age group in that area ($38,510), they would need just 4.40 years to save.
  • The least affordable metro area: Santa Cruz-Watsonville, Calif., isn’t simply a difficult place for young workers to save for a home — it’s pretty much impossible. On an annual household income of $21,178, a 15 to 24 year-old homebuyer would only realistically be able to qualify for a $36,506 30-year fixed-rate mortgage loan. With a median-priced home listed at $769,500, their mortgage loan would hardly make a dent. They would need 181.27 years to save enough to fill in that gap.
    • In the 10 most expensive metros, it would take 15 to 24 year-olds an average of 129.53 years to save for a home.
  • Things look much better in the South and Midwest: The 10 most affordable metro areas for 15 to 24 year-olds are also located in the Midwest and the South, where housing prices are significantly lower compared to other regions.
    • On average, it would take just under five years (4.79) to save for a home in the 10 most affordable metros.
  • Surprisingly expensive metros for 15 to 24 year-olds:
    • While 6 out of the 10 most expensive metro areas are located in California, there were some surprising findings in other states.
      • The 4th most expensive metro is Corvallis, Ore. Home prices are half as high as the most expensive metros on this list, but median incomes for this age group are among the lowest: $12,369.
      • Morgantown, W.Va., is the 6th most unaffordable metro for the youngest workers. 15 to 24 year-old workers in Morgantown earn among the lowest median incomes in the 380 metros we analyzed: $8,805.

Housing Affordability Calculator

Find out how long it would take you to save up for a home in your area.

Calculator Embed Code:
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Download the data behind this report:

Data analysis was conducted by Naveen Agarwal, MagnifyMoney Senior Data Analyst.

Metro Rankings for Ages 15 to 25

Metro Rankings for Ages 25 to 44

Metro Rankings for Ages 45 to 65

Metro Rankings for Ages 65 and Up

Metros by State: Searchable Database

Full Study Data

Appendix/Data Sources

Home prices: June 2016 median listing prices data provided by Zillow

Median income: Annual household income by age group and metropolitan area for 2014: U.S. Census Bureau.

Real Estate/Property Taxes: Real estate taxes for owner occupied units for metropolitan areas: U.S. Census Bureau

Mortgage interest rate: Bankrate.com National average on a 30-year fixed rate mortgage is 3.57% as of Sept. 1, 2016.

Downpayment: We assume a downpayment of 20%.

Savings rate: We assume homebuyers would save 20% of their annual take-home pay.

Closing costs: We assume closing costs of 4.5%.

Home Insurance rates by metro area: National Association of Insurance Commissioners (NAIC)

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Mandi Woodruff
Mandi Woodruff |

Mandi Woodruff is a writer at MagnifyMoney. You can email Mandi at mandi@magnifymoney.com

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