Are Millennials Starting to Buy Houses in the Burbs?

[4everwarriors]

They are in Brentwood, which has the best non-magnet HS in Tennessee according to USNWR.  It's also ranked higher than any non-magnet public school in the Chicago area except for Stevenson.

You've been away from your home town too long.  Those Southern stereotypes are starting to creep in.

Yeah butt da Pontiff sezz USNWR rankin's don't meen chit, hey?

[dgies9156]

They are in Brentwood, which has the best non-magnet HS in Tennessee according to USNWR.  It's also ranked higher than any non-magnet public school in the Chicago area except for Stevenson.

You've been away from your home town too long.  Those Southern stereotypes are starting to creep in.

I agree Williamson County and Brentwood probably is as good as it comes.

One can't say the same for the entire State of Tennessee. That's not a stereotype.

Also, USN&WR ratings  -- while Brentwood is a great public high school, the question is whether there is a statistically significant difference between it and about 100 other high schools in the United States. I'd be surprised. And, if USN&WR uses the same tactics for high schools as they do colleges, then all it means the winning high schools have a great public relations program!

That said, I have been away from Nashville too long  !! I do trust your sister will find Brentwood a great place for herself, her husband and her family! My good friends all have!

[dgies9156]

It's my understanding, this tilted to the wealthier, in high-tax states.  The new cap to deduct on prop taxes is $10K (if you are married, $5K as a single), which on a $750,000 home, in one of the highest taxed areas in the country (Nassau County in NY), is about $10,500 a year.  Same goes for a $450,000 condo in Logan sq (if you are single person), prop taxes for the year around $6500, so you would lose out on $1,500 deduction, not exactly life-altering.  So homes most millennials would buy in 200s, 300s, or 400s K, even if they are single, I would doubt would get impacted by this change.

Same goes for for mortgage interest, $750,000 income cap for married, or $375,000 for single folks...

Now for some I totally agree this new tax sucks in this case, but I doubt many millennials would fall prey to these changes that would impact their decision to buy a home.

You are missing one point. With the standard deduction in the new tax code, for many taxpayersnwith a starter home, it's likely to be more advantageous to take the standard deduction. This negates the benefit of mortgage interest and taxes, given SALT.

I can't comment on the likelihood that the SALT limit will ever be repealed. Depends on the make-up of future Congresses. If the GOP continues to retain control of the Senate, a repeal is extremely unlikely.

[warriorchick]

One can't say the same for the entire State of Tennessee. That's not a stereotype.

You can't judge schools based on state alone (which admit it - you did    ), and you know this, because you live in Illinois and I am pretty sure you would never send your kid to a high school in East St. Louis or Cairo.

[theBabyDavid]

the best school district in Tennessee

[dgies9156]

You can't judge schools based on state alone (which admit it - you did    ), and you know this, because you live in Illinois and I am pretty sure you would never send your kid to a high school in East St. Louis or Cairo.

Probably not.

Hope your sister is doing well in Brentwood. 

[theBabyDavid]

Brentwood. 

Isn't that where The Juice hung his Brunos?

[drewm88]

Sister Chick is right on. The reality is that once you have children, you face the prospect of the Chicago Public School system, where your child either is a genius or you are politically connected or your education is, well, let's just say suspect.

Pretty sure it's been discussed on here before, but the vast majority of Scoopers in Chicago live in neighborhoods where the schools are great. Yes, there are countless issues with CPS, but good neighborhood still = good schools.

[Galway Eagle]

Pretty sure it's been discussed on here before, but the vast majority of Scoopers in Chicago live in neighborhoods where the schools are great. Yes, there are countless issues with CPS, but good neighborhood still = good schools.

I feel like the difficulty to get into the Lane, Jones, Payton, Young, Northside, LP etc is blown out of proportion by certain posters. It's not that much different than testing into Ignatius, Loyola or Fenwick unless you're trying to place into the IB program or something.

[SaveOD238]

I'll throw in my experience, as a suburb-living millenial.

After we got married (2013) my wife and I lived one year in a cheap apartment in Kenosha.  When we decided to buy a house in 2014, we were thinking that kids were on the way, though she didn't show up until this August.  I fell in love with the idea of having my own place and my own yard.  We now live in Mount Pleasant, some parts of which are urban, some rural, and some suburban.  I live in basically the last subdivision of suburb before it goes rural.

I don't love it.  We went too suburban too quick, and now I want to bounce back the other way.  With home prices in Mt. P sky-rocketing (thanks, Foxconn) and the new baby having arrived, I'd like to sell the house and move somewhere with a) better schools and b) more amenities within walking distance.  The only real amenity within walking distance now is a YMCA, and even that is about 1.5 miles.  I think I'd prefer more of an inner-ring suburb like a Brookfield, even if it meant down-sizing the home a little bit.  Every once in a while, I get the urge to move back to a city.

[warriorchick]

I'll throw in my experience, as a suburb-living millenial.

After we got married (2013) my wife and I lived one year in a cheap apartment in Kenosha.  When we decided to buy a house in 2014, we were thinking that kids were on the way, though she didn't show up until this August.  I fell in love with the idea of having my own place and my own yard.  We now live in Mount Pleasant, some parts of which are urban, some rural, and some suburban.  I live in basically the last subdivision of suburb before it goes rural.

I don't love it.  We went too suburban too quick, and now I want to bounce back the other way.  With home prices in Mt. P sky-rocketing (thanks, Foxconn) and the new baby having arrived, I'd like to sell the house and move somewhere with a) better schools and b) more amenities within walking distance.  The only real amenity within walking distance now is a YMCA, and even that is about 1.5 miles.  I think I'd prefer more of an inner-ring suburb like a Brookfield, even if it meant down-sizing the home a little bit.  Every once in a while, I get the urge to move back to a city.

In Chicago, they consider the entire Kenosha area a suburb (especially if you're a millenial).   

[Eldon]

Look for smaller cities and towns around the nation to start mimicking the Naperville model.

Naperville is the city that we were talking about actually.  Apparently there is a push to build a huge condo complex right next to the Naperville train station--a sort of "gentrification" of the suburb, as it were.

Naperville is a bit unique though, no?  Among a sea of suburbs with 5-15,000 people, Naperville stands out in that it has over 150,000 people.  That's a lot of people.  You need lots of people to support a walkable downtown.

[Eldon]

A generation that rails against their parents only to follow in their footsteps?

Impossible!

What happens to all of the urban gentrified neighborhoods, e.g., the Bay Views, Logan Squares?  Do the Millennials move out, only to be replenished by the next batch of 24-30 year olds?

[Pakuni]

Without a doubt this is starting to happen and agreed it is because the group as a whole is finally having children.  Count me in this group.

The only difference though, is that Millennials are going to gravitate to the 'burbs that have a lot more urban amenities than their parents were looking for.  This means high demand for inner ring suburbs.  Milwaukee metro is a perfect case study in this.  Places like Wauwatosa, Shorewood, Whitefish Bay are seeing tremendous value growth and an influx of Millennials.  Meanwhile, more traditional 'burbs like Brookfield and Mequon, that have usually shunned urban style developments, have many projects underway that bring a denser and more walkable nature to their city centers.

I agree, though I don't think it's a entirely a result of millennial influences/preferences. Empty nesters in particular are as much as millennials are driving the market for denser housing in more walkable, city center environments (especially those with easy access to public transportation, i.e. train stations) and municipal/county governments are more open than ever to those kinds of developments.
And I think people across all demos have seen the downside of far aflung "McMansion" subdivisions.

[UWW2MU]

...I'd prefer more of an inner-ring suburb like a Brookfield...

Wait, what?     You want to live in an inner ring suburb or you want to live in Brookfield, which is it?   

[🏀]

In Chicago, they consider the entire Kenosha area a suburb (especially if you're a millenial).   

It's part of the Chicago area metropolitan planning, so why isn't it a suburb?

[warriorchick]

It's part of the Chicago area metropolitan planning, so why isn't it a suburb?

It is my understanding that the entire area from Crown Point, Indiana to Port Washington, Wisconsin can be considered one metropolitan area.

[BrewCity83]

The Chicago Megalopolis.

[🏀]

It is my understanding that the entire area from Crown Point, Indiana to Port Washington, Wisconsin can be considered one metropolitan area.

Could be, but Kenosha is included in decisions being made today within CMAP.

[mikekinsellaMVP]

It is my understanding that the entire area from Crown Point, Indiana to Port Washington, Wisconsin can be considered one a metropolitan area.

Chicago and Milwaukee are distinct MSAs.

Could be, but Kenosha is included in decisions being made today within CMAP.

Correct.  But the Wisconsin counties within the Chicago MSA (Racine, Kenosha) are under the planning authority of SEWRPC, not CMAP, so they get their policy directives from Milwaukee's MPO.

[DegenerateDish]

I live in Elgin, a town that should fit all the criteria laid out here.

Downtown area, nice condos (albeit across from the casino), multiple Metra stations downtown, restaurants/bars, Fox River, but downtown Elgin is still for the most part a ghost town. I don’t want to get this thread locked, I know why some of that is, but focusing on the other end of the spectrum, Elgin has come nowhere near what Naperville is, and can’t compete for the upscale St. Charles/Geneva crowds. I still think downtown Elgin can eventually be a gold mine, the festivals they have downtown always draw well, but downtown can’t seem to draw people on a typical September Saturday night as an example.

[🏀]

Chicago and Milwaukee are distinct MSAs.

Correct.  But the Wisconsin counties within the Chicago MSA (Racine, Kenosha) are under the planning authority of SEWRPC, not CMAP, so they get their policy directives from Milwaukee's MPO.

You are correct, someone else likes Urban Planning I see.

[Archies Bat]

You are correct, someone else likes Urban Planning I see.

His real name is Art Vandelay.

[mikekinsellaMVP]

You are correct, someone else likes Urban Planning I see.

Or the hazard of being the engineer on a team of planners.   

(Actually, it's pretty cool stuff.)

[martyconlonontherun]

I'm far from the brunch with avocado toast millennial, but I also favor city living. Unfortunately, wife got caught up in house fever and that's that. Seems like a lot of my friends are in a rush to not only get a house but one in a nice school district when their unconceived child is six years away from stepping into a classroom. I had a pretty good deal on rent in the city, so I feel any equity gained in the house is offset by taxes, maintenance, etc. Add in the time for shoveling, mowing the lawn, etc with the house and it was just way more efficient living in the city. Now I'm tied down with a lot of sunk costs in the house if a job opportunity opens up.