For most millennial college grads the idea of buying a home right out of college is a bit far fetched. Many millennials have taken to moving back in with mom as we pointed out in a post entitled ““We All Work As A Team” – Millennials Explain How It’s Going Living ‘Rent-Free’ At Home.” The trend actually so pervasive that home builders are even designing new homes with a master suite in the basement for returning millennials to have their own little “safe space.” According to a local builder in the Chicago area:
“For a mere $35,000-plus, the plan can include a bedroom/bathroom suite in a finished basement to accommodate the kids who inevitably will be returning home to live.”
That said, for the millennials looking to take the leap and finally get out of mom and dad’s basement, we have a great new study for you! Trulia has done some homework and found the best housing markets where you can get the biggest bang for your non-existent buck. Trulia even spliced the data a couple different ways so you’re covered whether you’re looking for “Space on the Cheap” (lowest price per square foot) or “Big Living” (highest median square footage for starter homes).
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If you’re looking to be frugal then Detroit or Toledo are great options for you but if you’re looking for size then Trulia would suggest Austin or Atlanta as alternatives. But like everything, there’s a catch…
Wouldn’t you know it…a previous Trulia study identified the best job markets for young millennial graduates and it turns out you really can’t have your cake and eat it too (unless mom is serving, of course). Of the 20 metro markets identified with either “cheap” or “big” starter homes, only 1 market overlapped with Trulia’s study on the best job market. Millennials, welcome to Indianapolis! On the bright side, with the impacts of global warming, temperatures actually get above 60 degrees in Indie for like 2 full months these days…and you thought global warming was all bad news!
In parting, Trulia also warned of the dangers of moving to the cities with the largest starter incomes. In San Francisco, the study found median incomes for college grads to be $48,000 while median rents are $4,500 per month. So assuming a 15% effective tax rate, that means mom and dad would only have to send $13,200 per year to cover rent! They might just be willing to do that. You don’t need to eat, do you?
What can we say, it’s a tough world out there. It might be best to stay in school and get another degree or a Masters perhaps. Colleges provide great “safe places” and we hear that student loans are plentiful. And the best part of all, we suspect that if Indianapolis turns out to be not all that appealing to you that you’ll be able to “gift” your student loans to taxpayers in the very near future!
Reprinted with permission from Zero Hedge.
