Buying a house appears to be out of reach for the Millenial and Gen Z populations of young adults. The availability and affordability of housing across the country are not in our favor.
However, it is not impossible, and more people are closer to owning a home than they realize. When it comes to buying a home, as the saying goes, it’s all about the location. There are few better places than Michigan to buy a home, especially a starter home.
On a national level, things are still tough. According to Realtor.com, mortgage rates are approaching 7%, necessitating a minimum income of $70,164 to purchase a standard starter home. The average cost of a starter home in the United States is $292,950, more than $100,000 higher than five years ago.
Fortunately for Michiganders looking to buy their first home, the state is helping to lower the averages. Only one state, West Virginia, requires a lower income to purchase a starter home and offers lower-cost starter homes.
According to Realtor.com data, Michigan residents can afford a starter home for $150,790 with a minimum income of $36,116. They would pay $903 per month, which is $500 less than the state’s median rent of $1,413.
Naturally, this entails a frugal lifestyle and an understanding of the Michigan real estate market. According to Redfin, the median sale price for a house in Michigan is $256,400. According to Redfin data, 26.1% of homes sold in the state sell for more than the listing price.
It’s also worth noting how abandoned homes in Detroit and Flint affect the market. While the market in Michigan is strong, some factors can cause results to appear more favorable.
Still, it is comforting to know that, for the time being, aspirations of purchasing a starter home are more realistic than many people believe.