SACRAMENTO, Calif. — The number of millennial renters with no eyes on buying a home continues to grow, according to a study by Apartment List.
In 2018, the number of millennial renters planning to "rent forever" was at 10.7%, however, that's increased to 12.3% this year. Apartment List says the Sacramento area has a slightly higher rate at roughly 14%, which was described as a "significant but moderate" rate compared to the national average and other California cities.
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While the Sacramento area found itself in the top 10 cities with millennials planning to rent forever, the top 10 also included San Francisco and was topped by San Jose.
- San Jose - 18.2%
- San Francisco - 17.2%
- Sacramento - 13.8%
- San Diego - 12.3%
- National Average - 12.3%
- Riverside - 11.8%
Still, that leaves about 86% of Sacramento millennials interested in buying a home. However, Apartment List went on to say nearly half of those interested haven't begun saving for a down payment.
- National - 48% with $0 in down payment savings
- Sacramento Metro - 46% with $0 in down payment savings
Nationwide, only 25% of millennial renters are prepared to put down 10% on a median-priced starter home in the next five years. Sacramento millennials came in slightly below that average. That figure places Sacramento millennials a bit behind some of the other large cities in California.
- San Francisco - 21%
- Los Angeles - 21%
- Sacramento - 23%
- San Diego - 24%
According to Apartment List, the biggest factor is affordability. Roughly 69% of the millennials forgoing home ownership said renting is the only form of housing they can afford, and, even with aspiring homeowners, 70% are waiting because they can't afford to buy a house.