Millennials make up approximately 20 percent of the U.S. population, but in 2017 accounted for 36 percent of all existing home sales according to the National Association of Realtors®. It is time to dispose of the myth that Millennials will not be homebuyers – many already have done so and others are actively searching today.
Where Millennials are buying, however, are not the major cities as their parents did in the past. Rather, they are finding jobs and housing in many smaller markets across the country.
To find out where Millennials are buying homes, Realtor.com looked at the following data and definitions:
- Adopted from the Pew Research Center the definition of who are Millennials – those born from 1981 to 1996 and are now aged 22 to 36. Note: Unlike the Baby Boomers that the U.S. Census Bureau defined as having been born from 1946 to 1964, there is no official definition for Gen X, Gen Y, Millennial, nor Gen Z
- Used median list prices of homes for sale as reported on Realtor.com
- Examined the 200 cities in the U.S. with the largest population
- Calculated the percentage of all loans issued in the markets to Millennials using data from Optimal Blue mortgage data
The following table shows the 10 markets with the greatest percentage of Millennials home mortgage borrowers (and implicitly homebuyers). Note that in each of these 10 markets, Millennials make up more than one-half of all borrowers and homebuyers. In addition to the data from Realtor.com, also included is the latest 12-month job growth rates from the U.S. Bureau of Labor Statistics.
While some of these markets lost jobs in the latest 12 months (Utica down 1.87 percent and Lafayette down 1.04 percent), others are showing very strong job growth. Provo, Utah, at 3.96 percent and Evansville, Indiana both posted impressive job creation rates.
To read the entire article from Realtor.com click https://www.realtor.com/news/trends/rule-the-roost-millennials-buy-the-most-homes-in-these-metros/
Without question, affordability is a major consideration for Millennial homebuyers. But they are buying homes.