HONOLULU – When it comes to buying a home on the islands, millennials may find themselves out of luck.
A new report by Filterbuy found that the millennial homeownership rate in Hawaii is the third-worst in the nation, behind New York and California.
According to Filterbuy, a company that provides air filtration for homes and produces trend reports about the real estate market, the millennial homeownership rate in Hawaii is 32.7%, with millennials accounting for 22% of the state's population. New York has a 30.2% millennial homeownership rate, while California has a 30% rate.
Meanwhile, Wyoming nearly has a 60% millennial homeownership rate, followed by Minnesota and South Dakota, at 55.1%, and Utah, at 54.3%.
The national homeownership among millennials, people born between 1981 and 1996, is 42%.
"Millennial homeownership is an important topic because millennials have historically had lower homeownership rates than previous generations at the same age," said Mike LaFirenza, owner of Lattice Publishing, which wrote the story. "But since 2014, millennials now represent the largest share of homebuyers in the U.S., and their unique qualities and preferences are having far-reaching impacts on the real estate market."
Filterbuy analyzed the millennial homeownership rate data using the 2019 U.S. Census Bureau report, the most recent report. They gathered the median home price statistics from the current Zillow Home Value Index.
Currently, Hawaii's median home price (the mid-point for real estate prices) is $778,000.
The Filterbuy report echoes other similar news reports in recent years about the struggles millennials face in buying a home.
With millennials now ages 25 to 40 years old having graduated college and reaching an age to start a family and buy a home, some face crippling student loan debt and enter a housing market that has skyrocketed during the coronavirus pandemic.
Hawaii is no different. Some reports say the Aloha state is the worst for millennial home buyers.
According to Yahoo, citing the personal finance website GOBankingRates, the median millennial earnings in Hawaii are $72,915. Although it's the seventh-highest median income for millennials among all states, it's still not enough to afford a home on Oahu.
In September, the median sale price of a home on Oahu was $1.05 million, LocationsHawaii reported.