A new survey from Apartment List looked at how millennials are saving for their first home. In many cities, they found, millennials are vastly underestimating how much they need to save for their home.
Detroit millenials should be set, right? The caveat is that they're saying a starter home in the Detroit area averages $17,950. Someone buying a $17,950 home around here is likely getting more than they bargained for. (Although we did find a few move-in ready homes in the $50-$100K range this week).
So what can millennials in Detroit, or really anyone in Detroit, do to get on the path to home ownership? There are a some options.
There's the Detroit Home Mortgage program, announced earlier this year, which aims to help lend qualified homebuyers the full amount needed to purchase a renovated home, or to buy and rehabilitate homes anywhere in the city of Detroit (has anyone gone through this yet? Tell us about it!)
There's also the Neighborhood Assistance Corporation of America (NACA), which helps funding for renovated homes, and we've heard mixed things about (easy to work with/slow process).
And then there's a Detroit start-up called BoostUp, a company that helps users save up for a down payment. This is very millenial-friendly. Users create a profile where they choose their down payment goal. Users deposit money into an account, where it's matched by a brand partner (again, companies are coming to the rescue). Users can also raise funds through crowdfunding through friends and family.
Of course, all of these different options for helping future homeowners can only do so much, when finding insurance and getting an accurate assessment on a house in the city continue to be a bigger issue.
- The Affordability Crisis: What Happens When Millennials Can’t Afford to Buy Homes? [Apartment List]
- 4 Move-In Ready Houses in Detroit Under $100K [Curbed Detroit]
- Millennials Need a Decade to Save for a Down Payment, Says Study [Curbed]
- Detroit Home Mortgage Announced, Buying Will Get a Little Easier [Curbed Detroit]
- Detroit Neighborhood Initiative [Building Detroit]