Millennials today make up the largest population cohort ever recorded in U.S., with an estimated 83 million in the 18 to 34 year old range. While many industry observers note that Millennials are not becoming homebuyers as did past generations, they also need to consider than their largest age group within Millennials is 24 years old, then 23 and 25. The National Association of Realtors® reported that the median age of 1st time homebuyers is 31, thus the lack of Millennial homeowners thus far is normal since as a group they still are shy of the age at which most people buy a property for the first time.
Millennials are having a material impact in many markets across the country, however. To examine where that is happening, The National Association of Realtors® (NAR) completed an analysis of the top 100 metro areas. Factors in their analysis included:
- Percent of Millennials in Total Population (2014)
- Percent of Millennials Movers to All Movers (2014)
- Employment Growth March 2014 to March 2015
- Medium Household Income of Millennial Movers
- Qualifying Income of First-Time Homebuyers
- Millennial Movers Homeownership Rate (2014)
- Change of Homeownership Rate of Millennials Movers 2013 to 2014
So what are the best markets for Millennial homebuyers based on NAR’s metrics? Of note is Minneapolis, which makes the top-10 of almost every Millennial list on any topic.
To read NAR’s finding click http://realtormag.realtor.org/daily-news/2016/06/03/10-best-markets-for-millennials
To view the attributes and metrics on Millennial Housing in the top 100 U.S. markets click http://narnewsline.blogs.realtor.org/files/2016/06/Millennial-Markets-Analysis-of-100-Metro-Areas-2.pdf
Millennials do have homeownership as a goal – just give them time to reach an age that is more typical among first-time homebuyers.
Kudos to NAR for this study.