There are many obstacles for millennials who want to own a home, but they still make up the largest share of homebuyers in the U.S.
A recent study from LendingTree analyzed mortgage offers across the country’s 50 largest metros from Jan. 1 through Dec. 1, 2022, to highlight where millennials — defined as those born between 1981 and 1996 — are looking to buy.
The study found that across the United States, an average of 53.88% of mortgage offers went to millennials. In 37 of the country’s 50 largest metros, millennials make up the majority of buyers.
10 most popular U.S. cities for millennial homebuyers
- San Jose, Calif.
- Denver, Colo.
- Boston, Mass.
- Seattle, Wash.
- Austin, Texas
- San Francisco, Calif.
- New York, N.Y.
- San Diego, Calif.
- Los Angeles, Calif.
- Washington, D.C.
In San Jose, which topped the list, 63.57% of mortgages were offered to millennials. The average age was 33.01 years old.
Based on Realtor.com‘s housing index, homes for sale in San Jose have a median listing price of $1.2 million and spend an average of 36 days on the market.
The average down payment among millennials was $144,942, according to LendingTree.
San Jose is ideally placed for millennials since it’s close to San Francisco and Silicon Valley.
Homes in Denver, Colorado were selling for a median price of $560,000 in February 2023.
Walter Bibikow | Getty Images
Denver is the second most popular city for millennial homebuyers. The share of mortgages offered to millennials was 61.35%, and the average age of those buying in the city was 32.23.
In February 2023, Denver homes were selling for a median price of $560,000. On average, homes sell after 26 days on the market, compared with five days last year, according to RedFin.
The average down payment among millennials in Denver was $74,477.
Boston rounds out the top three. The share of mortgages offered to millennials last year was 60.59% and the average age was 32.38, according to the Lending Tree study.
Boston gives millennial homeowners proximity to several prestigious universities, including Harvard and Massachusetts Institute of Technology, which have continued to rank as some of the best colleges in the U.S.
The average Boston home value is $610,400, compared with the national average of $244,900, according to Niche.
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Source: CNBC