South Carolina leads the nation in home ownership for young people, according to a new report.
Planera, a construction scheduling firm, analyzed U.S. Census Bureau Data to determine how many individuals ages 15 to 34 held a mortgage in each state. South Carolina led the rankings with 12.64% of young people holding a mortgage.
South Dakota followed behind with 12.53% and Wyoming was in third at 12.39%. Planera divided the total number of people ages 15 to 34 in each state by home ownership to determine a percentage.
“More Millennials and Gen Z buy homes in South Carolina than anywhere else in the U.S.,” the report reads.
Planera also accounted for average household incomes and average house price in each of the states it monitored. The average price of a house in South Carolina is $300,500 and the average annual income is $55,300.
Planera said monthly payments for mortgages in South Carolina remain largely achievable due to the state’s cost of living index, which sits at 94.7.
“Day-to-day expenses stay manageable alongside mortgage payments,” the report reads.
South Dakota came in second with a 91.9 cost of living index and average house prices at $312,000. In Wyoming, 1 in 8 young residents own a home, partly due to average annual income at $60,000, more than in South Carolina and South Dakota.
Montana and Delaware rounded out the top five in the rankings. Average home prices in Montana sit at $455,000 while income is $53,000.
Delaware earned its spot high in the rankings due to its entry-level salary positions sitting above $67,000 per year while average homes sell around $396,000.
Tennesse fell to six in the ranking with 11.48% of young people in the state owning a home. Average income in the state is $71,900 and house prices are $327,600.
“Mortgage rates have a bigger effect on young buyers because they almost always put down less up front,” the report reads. “A smaller deposit means a bigger loan, and a higher rate on a bigger loan adds up fast in monthly payments.”
California, New York and Massachusetts topped the list of states where young people are least likely to own a home. In California, 0.0005% of young people own a home where the average price is $765,036.
Only 0.0011% of young people in New York own a home where the average price is $502,162. Massachusetts follows with 0.0031% of young people owning ahome and average prices at $642,387.
“States with lower rates naturally see stronger participation from young buyers. A half-point difference in rate on a $300K mortgage is roughly $100 a month. Over a 30-year term, that is $36,000,” the report reads.”This is the kind of money that can make you decide if you are buying or not.”