Dive Brief:
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The most livable city in the U.S. is Jersey City, NJ, followed by Irvine, CA, Plano, TX, New York and Honolulu, according to a report from the analytics-driven personal finance site SmartAsset. Memphis, TN received the lowest ranking due to high crime and unemployment rates.
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The report ranked the quality of life in 93 cities using an average weight from individual rankings along six metrics: walkability, violent crime, property crime, unemployment, income after housing and population density.
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Jersey City's ranking as most livable city in the U.S. falls in line with Zillow's prediction last year that 'deteriorating housing affordability' would determine 2016 housing market trends. The city allows residents to easily travel to Manhattan for work while taking advantage of lower housing costs than in New York City.
Dive Insight:
Affordable housing in the U.S. has become a hot-button issue for stakeholders in the housing market, particularly as millennials saddled with student debt opt for cheaper renting options in cities with high-paying jobs. That increases the population in those cities, often without growing the housing inventory to match, causing housing costs to increase and forcing many homeowners to relocate.
This issue is challenging construction companies that are trying to balance their bottom lines and state efforts to tackle affordability, often through inclusionary zoning laws that affect development costs. In its 2016 housing market prediction, Zillow anticipates that rising home values will continue to outpace income gains, as millennials continue to delay homeownership and drive up the median age of first-time home buyers.
That trend could be shifting. In a report last month, Zillow noted that millennials are pursuing homeownership, and a majority are looking for single-family homes in the suburbs when they do so. More than one-third of homeowners in the third quarter were under the age of 35, according to Census Bureau data, and the overall market had more owners than renters for the period.
However, high student debt and rising rents are preventing young, would-be buyers from saving for a down payment, and many are unaware of low down payment options that are designed to boost homeownership rates among this group, in particular.
