Lima claims high share of young homebuyers, report says
LIMA — Young homebuyers are more likely to become homeowners in the Lima area than in most other small metropolitan areas in the United States, according to a new report from the Inspection Support Network.
The report, which analyzed home buying trends for adults under 25, found that these young buyers accounted for 13.7% of all conventional home purchase loans in Lima. in 2020.
Lima had the second-highest percentage of shoppers under age 25 that year compared to other small metro areas included in the report, trailing the Waterloo-Cedar Falls, Iowa, metro area by one-tenth of a point. percentage.
Young homebuyers have benefited from historically low interest rates and high employment.
But, said Timothy Stanford, broker for Superior Plus Realtors, “they are maturing in a market that has a backlog of demand.”
The United States would need 3.8 million more homes on the market to meet demand from potential buyers, Freddie Mac officials estimated in a report last summer.
Or, as Stanford put it, “There just aren’t enough houses to go around.”
Still, the national homeownership rate for adults under 25 has rebounded to 25.7%, the highest rate since the height of the housing bubble in 2005, according to the report. Inspection Support Network.
The cities with the highest rates of young homebuyers were heavily concentrated in the Midwest.
Fort Wayne, Ind., claimed the highest share of buyers under 25 for mid-size metros, with 11% of homebuyer loans going to young adults that year. , according to the report.
Other Ohio cities on the small-to-medium city lists include Wooster, with 11.2% of loans to under-25s; the Dayton-Kettering area at 8.9%; Toledo, also at 8.9%; Youngstown with 8.4% and the Canton-Massillon region with 7.6%.
These small and medium-sized markets recorded higher concentrations of young buyers than major metropolitan areas.
Columbus came in 12th on the list of major metropolitan areas with the highest share of young homebuyers. But only 5.5% of home loans issued there in 2020 went to adults under 25, according to the report. In total, this represents 1,490 loans.
It comes down to price: The median loan for a home in Columbus was $155,000, compared to $105,000 in Lima, according to the Inspection Support Network. Both markets were more affordable than the national trend, where the median loan in 2020 was $165,000.
Lima had the second-highest percentage of young homebuyers for small U.S. metro areas, according to a new analysis of homebuyer loans taken out by adults under 25 in 2020.