Despite the declining availability of affordable housing in the Bay Area, millennials are still moving to the region in droves. San Francisco is well known for its better than average employment opportunities and quality of life, all of which are very important to Gen-Y graduates moving to the area to start their professional lives.
Lafayette CA Homes for Sale Appealing to Millennial Buyers
A new analysis forecasts that millennials will account for the largest number of home purchases in 2016. Lafayette CA homes for sale continue to represent a draw to these home shoppers. While San Francisco is ranked the number fourth best city for Gen Y buyers, it has also overtaken New York again as the most expensive rental market in the country. The Bay Area also received a high ranking for being among metros with the easiest access to urban conveniences and employment. Homes for sale in Lafayette CA with their favorable proximity to BART, and relatively attractive price points have been a draw with younger buyers. The steeply increasing home prices in San Francisco have made Lafayette a much more attractive value proposition.
According to a recent Internal Revenue Service (IRS) report, city residents are being lured East to more affordable housing. Their report observed a trend six-year period that showed a 42 percent increase in the number of households moving out of the city. The majority of these movers settled in Alameda and Contra Costa counties. Even with more people moving into the East Bay, Lafayette CA homes for sale are still more affordable than in San Francisco where the cost for a single family three-bedroom home can easily exceed $1.4 million.
Lafayette CA Real Estate — Great Alternative To San Francisco Market
According to the most recent data from Fannie Mae, housing prices are expected to continue to outpace household income gains in 2016. The average American household will still make more money than they did in 2015; however, those income gains will not be enough to afford a home in most major markets. The economy is growing at a steady 2.2%, which means that wages should continue to grow. Interest rates may continue their move up this year, or the Fed may take a more cautious approach, given the instability in world financial markets.
Fears of a new bubble that could return the housing market to previous lows have been quelled amidst new reports that foreclosures rates have normalized. In a recent US Foreclosure Market Report, last year, filings in the US were down 62% from the highs of 2010. This report is a sign for many of the strength of the current housing market. However, as housing prices continue to climb, old fears that only the most cash flushed candidates will be qualified to afford homes in major markets have resurfaced.
Contrary to some reports, the influx of newcomers to the area for employment in Silicon Valley and other areas throughout the state is tempered by those exiting the state. According to data, California is a balanced state with a nearly equal number of inbound moves and outbound moves. This is good news for the housing market. Balancing inbound and outbound moves will give housing inventory an opportunity to continue to seek normalized levels. Lafayette CA homes for sale continue to draw an ever-increasing number of younger buyers who are drawn to its quaint appeal, abundance of shops and restaurants, proximity to San Francisco’s tech centers, and its relative affordability. And, for those with children, we can’t forget about Lafayette’s outstanding schools!