Thanks to high salaries, good opportunities for advancement, and affordable home prices, young professionals in Baton Rouge are more likely to own their home than their peers throughout the south.
For the typical American, buying a home is one of the most important purchases they’ll make in their lifetime. And, as of late, it’s been a pretty safe investment: the median single-family homeowner who bought in 2011 would have seen a $229,400 increase in the value of their home by the end of 2021. About two-thirds of Americans currently own their home, and the dream of home ownership is alive and well amongst the nation’s youngest generations: 71% of Millennials and 68% of Gen Zers still believe that homeownership is a part of the American Dream.
Unfortunately, skyrocketing home prices have many young potential homebuyers feeling like homeownership simply isn’t possible for them. Young people have been flocking south over the past decade in search of, among other things, homes they can afford. But the sheer influx of people into popular southern cities is causing home price growth to accelerate in places like Nashville, Atlanta, and Dallas, pricing out many of these same people who moved south in pursuit of more affordable housing.
In Baton Rouge, however, homeownership is a reality for a lot of young people. About 43% of the Capital Region’s younger-than-35-year-olds owned their home between 2018 & 2022. That’s about 8 percentage points above the national average, and it’s also higher than the share in peer regions like Tulsa (40%), Columbia (39%), and Chattanooga (39%). Baton Rouge really stands out compared to larger southern metros like Nashville (37%), Houston (32%), and Austin (27%).
What makes this level of young homeownership possible?
Although housing is relatively affordable in Baton Rouge, that’s not the full story. As we’ve previously written, young professionals make more money in Baton Rouge than they do elsewhere, and they’re also more likely to occupy top managerial positions at a younger age (which typically comes with a pay bump). These factors, combined with the fact that the cost of housing in the Capital Region is below the national average and more affordable than in places like Charlotte, Raleigh, and Atlanta, gives our region’s homebuying young professionals a leg up on their peers throughout the south.
While developing the Better in BTR talent attraction campaign, opportunities for home ownership popped up consistently as something that young professionals weigh when they consider a move. And they’re right to weigh it so heavily – one study found that those who purchased their first home between ages 25 and 34 accumulated $72,000 more in housing wealth over their lifetime than those who purchased between 35 & 44. Buying early has its perks, and Baton Rouge offers one of the best opportunities for young potential homeowners to buy early. As cited above, Millennials and Gen Zers view home ownership as a part of the American Dream – it stands to reason that regions that make that dream possible have a natural advantage at attracting young talent.
