As the largest population cohort seen in U.S. history, where Millennials buy housing will dictate future performance of local housing markets. With an estimated 83 million Millennials just in the 19 to 35 year old age bracket, the Millennial group already exceeds the number of Baby Boomers by almost 10 percent. Boomers, however, are the current largest group of U.S. homeowners while Millennials became the largest group of homebuyers in 2016.
To identify which markets Millennials are buying homes, SmartAsset ranked 200 cities in the U.S. based on homeownership rate of heads of households under 35 years of age in 2015 (latest data available from the U.S. Census Bureau’s American Community Surveys) and also as of 2006. They then averaged the two and assigned a score from 100 (the highest) to zero (the lowest). The following table shows the ranking of the top-10 Millennial housing markets based on the average of the two homeownership rates.
Interesting to note that there are no major markets such as New York City, Los Angeles, Chicago or Miami. It was also surprising (to me) that three California markets made the list given the comparatively higher cost of housing.
To read the entire SmartAsset study including the top-25 Millennials markets click https://smartasset.com/mortgage/where-are-millennials-buying-homes-2017-edition
From an economic perspective, Millennials are an exciting and growing driver of the U.S. economy, with another 14 years of coming household creation. Where Millennials buy will impact local markets. Economically speaking, it is going to be a fun ride.