Lima claims a high proportion of young homebuyers, the report finds

LIMA — Young homebuyers are luckier in becoming homeowners in the Lima area than in most other small metropolitan areas in the United States, a new report from the Inspection Support Network found.

The report, which analyzed homebuying trends for adults under the age of 25, found that these young homebuyers accounted for 13.7 percent of all traditional home purchase loans in Lima in 2020.

Lima was home to the second-highest percentage of home buyers under the age of 25 this year compared to other small metropolitan areas included in the report, trailing the Greater Waterloo-Cedar Falls, Iowa area by a tenth of a percentage point.

Young homebuyers have benefited from historically low interest rates and high employment.

But, said Timothy Stanford, a broker for Superior Plus Realtors, “they’re growing up in a market that has some catching up to do.”

The United States would need an additional 3.8 million homes on the market to meet demand from potential homebuyers, officials estimated with Freddie Mac in a report last summer.

Or, as Stanford put it, “There just aren’t enough homes for everyone.”

Still, the national homeownership rate for adults under 25 rebounded to 25.7 percent, the highest rate since the housing bubble peaked in 2005, according to the Inspection Support Network report.

Cities with the highest proportions of young homebuyers were heavily concentrated in the Midwest.

Fort Wayne, Indiana, claimed the highest proportion of home buyers under the age of 25 for midsize cities, with 11 percent of home purchase loans that year going to young adults, the report found.

Other Ohio cities that made the list of small and medium-sized cities include Wooster, where 11.2 percent of loans go to under-25s; the Dayton-Kettering area at 8.9 percent; Toledo also with 8.9 percent; Youngstown at 8.4 percent and the Canton-Massillon area at 7.6 percent.

These small and medium-sized markets saw a higher concentration of young homebuyers than large metropolitan areas.

Columbus was ranked 12th on the list of major metropolitan areas with the highest percentage of young homebuyers. But just 5.5 percent of home loans issued there in 2020 were for adults under the age of 25, the report said. That’s a total of 1,490 loans.

Price matters: According to the Inspection Support Network, the average loan for a home in Columbus was $155,000, compared to $105,000 in Lima. 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. metropolitan areas, according to a new analysis of homebuyer loans taken out by adults under 25 in 2020.

File Photo | The Lima News

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