This is the next post in my series explaining why the Millennial generation really can afford to buy a home in the Dayton, Ohio area, despite national media coverage to the contrary. My previous post explained topics that I will cover over my next several articles and pointed out that real estate markets are regional, not national. While it is true that in areas such as San Francisco, a home less than 1,000 square feet in a less than desirable area might cost you north of half a million dollars, the Dayton metro area market is drastically different. Yes, new construction is costly, and yes Dayton is a competitive market with low inventory at certain price points. But there are also a number of homes, priced at less than a $100,000, that are located in up and coming areas and fit the description of a starter home. Contact a real estate agent today for assistance with finding a house.
First, let’s talk about what a starter home actually is – a home you buy while you “are just getting started.” This might apply to a young couple who have not yet started having children, a single person who plans to get married in the future but wants to invest in a home in the meantime, or a person or couple who wishes to purchase a home but have a limited budget. A starter home is meant to be smaller and less luxurious than a ‘forever’ home. Often starter homes have smaller yards, more limited parking, and less storage, because those needs are not as important to a smaller family.
Now, let’s talk about inventory. The question of how much inventory is available really depends on where you want to look. Go to Zillow, type in “Dayton, Ohio,” and set your price parameters between $50,000-$150,000. You will see a massive number of available homes. Now change “Dayton, Ohio” to “Kettering, Ohio,” and leave your price point as is. Suddenly, the number of available homes drop drastically. The same is true for Centerville, Miamisburg, Huber Heights, etc. Why? Because in this current market, there is lower inventory in the suburbs, the prices are higher, and there are fewer “starter” homes.
Now, location preference is a very personal thing. If a new home buyer is determined to live in a specific area, they may have to accept a higher price point and may need to bid on several houses before one is accepted. However, Millennials who are looking for an affordable home may wish to consider something in the Dayton proper area. Homes in the Dayton city limits are closer to downtown and the burgeoning restaurant, small business, and bar scene. While the downtown condo developments have made big splashes in the local news, small real estate investors have taken an interest in areas such as Belmont and South Park, meaning a young buyer could get a newly renovated home for a good price. It is also possible for a new buyer to qualify for a renovation loan. Because the price points on homes are so much lower, a savvy buyer may be able to get brand new renovations done, and still end up paying less than they would for a house in the suburbs.
While it is true that inventory in the suburbs remain low, I would urge young buyers on a budget to consider Dayton neighborhoods as well as the suburbs. Areas such as Belmont, Patterson Park, Shroyer Park, Walnut Hills, and the Huffman Historic District are all areas that have seen an increase in investment, are close to new businesses and restaurants, and have easy access to freeways and other parts of the Dayton metro area. If a young buyer is having trouble finding something in their preferred area, I would urge them to expand their location preferences. But the argument that there are no houses to buy- well that is just not true.
If you need assistance in finding a Dayton, Ohio starter home then contact me to speak with a realtor. I also service Beavercreek, Centerville, Cincinnati, Clayton, Englewood, Oakwood, Fairborn, Harrison Township, Huber Heights, Kettering, Miami Township, Miamisburg, Riverside, Springboro, Trotwood, Vandalia, Washington Township, West Carrollton, and Xenia.