Oct 26, 2023 - News

Why most Salt Lake City millennials can't afford to buy homes

Share of mortgage purchase requests from millennials
Data: LendingTree; Note: Millennials are adults ages 27 to 42 in 2023; Map: Alice Feng/Axios

Many young Salt Lake City homebuyers are enlisting family help as the cost of homes become increasingly out of reach.

Why it matters: Nearly three-quarters of aspiring homebuyers say affordability is the No. 1 obstacle to owning a house, per a Bankrate study.

  • A Redfin report on "nepo-homebuyers" found 38% of recent buyers under age 30 received family money to afford their down payment, Axios' Brianna Crane reports.

Zoom in: The median sales price of a Salt Lake City home last month was $545,000, per Redfin.

  • Millennials in the Salt Lake City metro area accounted for 55% of mortgage purchases for the first half of this year.

Catch up quick: Millennial mortgage applications were up less than 1% for the first half of 2023, compared to the same time last year, according to figures LendingTree shared with Axios.

  • In the first half of 2022, nearly 52% of LendingTree's mortgage requests across the U.S. came from millennials. In the first half of 2023, that figure dropped to roughly 50%.

What's happening: Mortgage rates have pushed many house hunters, especially young buyers, out of the market.

Yes, but: Millennials still make up a large share of first-time buyers.

The latest: Housing industry groups are urging the Federal Reserve to stop raising interest rates.

  • The groups said they worried about the impact the high interest rates were having on the volatile real estate market in a letter sent earlier this month to the Federal Reserve Board.

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