Median Age Influences Area Housing Costs
At first this statement may catch you off guard, however, once you really dig into age and housing costs, it begins to make sense. The folks at trulia® mapped the country based on age and then looked at housing costs in some of the major metro areas. We’ve all heard from real estate agents that the fewer houses on the market, the more expensive the options are, but there’s more to the story. More than the availability of housing, the age of the median buyer influences the cost of housing.
Where Housing Costs Are Highest
It’s really no surprise that some of the most expensive housing costs are near Washington, DC, San Francisco, CA, and New York, NY. If you think about those areas, there is a very high concentration of working age adults. Those between the ages of 20 and 64. These three cities average close to 70% of the population as being working age, when the national average is just 59%. When you have couples who are able to afford housing because they’re both working and likely moving up in the workforce, the cost of housing increases. Housing in these areas go for more than three times the national average.
Higher Retired Population Equates to Lower Housing Costs
Granted, retirees often have smaller homes which we expect to be lower in cost. However, if we look at where these populations are, you might expect higher than average housing costs because they’re often along the Florida beaches and in other warm climates. One example is Flagler Beach, where nearly a third of the population is of retirement age and home values are right around the national average of $217,300.
How This Affects You
Depending on where you are looking to purchase a home, you may find that the housing costs are significantly more than where you are moving from. There are things you can do. First, before you accept a job offer, do a little research and make sure the salary is proportional to your experience and the cost of living in the area, which includes housing costs. Second, work with a mortgage company on pre-approval. That will help you know what you can afford and avoid falling in love with something out of your price range. Third, if you can’t afford to be in the exact area your office is in because of the cost, weigh the pros and cons of moving further out and dealing with a longer commute.
If you are planning on moving and want pre-approval for your new home, Hamilton Group Funding can help. Just reach out to our local branch and speak to one of our specialists.