Despite slowing home price growth, 74% of millennials make financial concessions to afford housing. By comparison, only 40% of older generations make these sacrifices, according to CoreLogic.
Overvalue in some of the biggest housing markets cause many millennials to make cuts in their personal lives, work a second job, or bring in roommates and renters.
According to the CoreLogic Market Condition Indicators (MCI), 35% of metropolitan areas have an overvalued housing market as of February 2019.
CoreLogic and RTi Research conducted a survey measuring consumer-housing sentiment in high-priced markets. In all, 62% of residents in these markets acknowledged that housing was unaffordable, compared to only 11% of respondents across all markets surveyed. Nearly three quarters of renters (71%) in these markets felt their housing costs were unaffordable, compared to just 16% of renters across all markets.
The study focused on the dynamics of housing decision making and the impact that the housing market had on the attitudes and perceptions of residents in high-priced markets.
“About 40% of the top 50 largest metropolitan areas in the country are now categorized as overvalued and we expect that percentage to grow over the remainder of 2019,” said Frank Martell, president and CEO of CoreLogic. “The cost of either buying or renting in expensive markets puts a significant strain on most consumers.”
CoreLogic research shows that about 74% of millennials, the single largest cohort of homebuyers, now report having to cut back on other categories of spending to afford their housing costs.