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.
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.