Reno among worst in the nation for its share of young adults buying homes
Young adults in Reno, Nev. are buying fewer homes compared to the rest of the nation, according to an analysis of home purchase loans.
Residents younger than 25 in the Reno metro area accounted for just 3.6% of home purchase loans, according to the 2024 Construction Coverage housing study. The national average is 5%.
The study uses 2023 data from the Federal Financial Institutions Examination Council, which is the latest full year available.
Read more:What will be trending for luxury real estate in 2025? This report tells you
Reno's homebuying rate among young adults placed the city 75th among 100 mid-size metros in the United States. Reno was also ranked at 292 overall among all 382 cities included in the study, placing it among the bottom fourth of the list.
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Reno's low placement reflects its worsening housing affordability woes since the region bounced back from the Great Recession.
Young Reno adults paying more in mortgage than rest of U.S. on average
The median mortgage loan for Reno's under-25 homebuyers was $330,000, according to the study. In contrast, the median loan amount nationally was $195,000 — a difference of $135,000.
The median sale price for an existing home in Reno-Sparks was above $600,000 in December, according to Sierra Nevada Realtors.
Nevada fared even worse than Reno in the study, with young adults accounting for only 3.4% of home purchase loans. The rate was enough for Nevada to be ranked the 10th-worst state in the list, joining other such states as Hawaii, California and Massachusetts.
The state with the most homebuyers under age 25 was Iowa at 11.9%, followed by North Dakota at 10.2%.
For many young adults fresh out of college or starting new careers, buying a house is still difficult even as the red-hot market from the COVID-19 pandemic has cooled off.
'Finding a home remains challenging for many buyers,' according to Construction Coverage. 'Elevated home prices and high interest rates have made it especially difficult for young, first-time homebuyers to make a purchase.'
Zillow estimates that more than 4.5 million homes need to be built to keep up with the housing shortfall and meet existing demand. This means young adults have to compete with Baby Boomers and Millennials for limited inventory.
Although the Great Recession reduced the rate of home ownership among young adults, the group rebounded and hit an ownership rate of 25.7% in 2020. The rate tied the previous record in 2005.
After the pandemic, however, homeownership among those younger than 25 decreased once more, falling to 23.6% in 2023.
'Despite these challenging conditions, young buyers have made progress in homeownership in recent years,' according to Construction Coverage.
'However, after peaking during the pandemic, the under-25 homeownership rate has declined.'
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