Report: Millennials Want to Buy in Philly but Can't Afford It

Only 3 percent can afford to buy a home within the next year

A new report reveals what millennials unfortunately already know: As much as young adults want to, a majority of them can't afford to buy a home in Philly.

The Apartment List renter survey found that although 75 percent of local millennials surveyed said they plan to purchase a home eventually, a whopping 79 percent of them can't afford to do so.

Only 3 percent of people surveyed said they would be able to buy within the next year. A little more than a third of millennials said they'd have to wait about three to five years, most likely because they needed to save up; the average amount of saved money millennials have right now is a just $2,458, or $187 a month.

// //]]>

That's bad news, since other data shows that it makes much more sense affordability-wise to buy instead of rent in Philly. Homeowners spend 14 percent of their income on their monthly mortgage, while renters spend double that.

There is one silver lining from the report, though. Turns out that most millennials in Philadelphia actually underestimate the amount of money they'd have to save for a down payment.

Those surveyed said they'd probably need about $23,180. But based on starter home prices from Trulia, the researchers found that you'd only need about $11,940 for a down payment, give or take depending on the quality of the home.

In that case, most millennials could afford to buy within two to three years.

• The Affordability Crisis: What happens when millennials can't afford to buy homes? [Official]
• Why buying makes more sense than renting in Philly [Curbed Philly]