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It makes sense that so many homebuyers are millennials aged 26 to 41.
That is when people typically start families and enter their prime earning years. So that demographic is when buying makes the most sense.
So concludes a new report by the mortgage marketplace LendingTree examining mortgage offers made last year in the nation’s 50 largest metro areas. More than half of such mortgage offers — nearly 53% — went to millennials, who also make up the majority of buyers in 37 of those metro areas.
In Boston, San Jose, and Denver — millennials make up the largest share of buyers, with more than 60% of mortgage offers.
No. 1: San Jose, Calif.
- Share of mortgages offered to millennials: 63.57%
- Average millennial age: 33.01
- Average credit score among millennials: 751
- Average down payment amount among millennials: $144,942
No. 2: Denver
- Share of mortgages offered to millennials: 61.35%
- Average millennial age: 32.23
- Average credit score among millennials: 735
- Average down payment amount among millennials: $74,477
No. 3: Boston
- Share of mortgages offered to millennials: 60.59%
- Average millennial age: 32.38
- Average credit score among millennials: 741
- Average down payment amount among millennials: $84,259
Meanwhile, in the sunny climes of Las Vegas, Birmingham, and Phoenix, they make up the smallest share — with about 45% of mortgage offers.
No. 1: Las Vegas
- Share of mortgages offered to millennials: 41.92%
- Average millennial age: 32.89
- Average credit score among millennials: 715
- Average down payment amount among millennials: $49,604
No. 2: Birmingham, Ala.
- Share of mortgages offered to millennials: 45.95%
- Average millennial age: 32.10
- Average millennial credit score among millennials: 713
- Average down payment amount among millennials: $46,998
No. 3: Phoenix
- Share of mortgages offered to millennials: 46.11%
- Average millennial age: 32.52
- Average credit score among millennials: 718
- Average down payment amount among millennials: $65,395
LendingTree found that Boston, San Jose, and Denver are the most sought-after American cities for millennial homebuyers.
The average age of these mortgage seekers hovers around 32 or 33.
“Even if millennials aren’t usually as financially well off as older generations are, that’s not stopping many of them from jumping into the housing market,” wrote Jacob Channel, LendingTree’s senior economist and the report’s author.
He expects that as these young buyers “continue to age, get married, and start families, the homeownership rate among millennials will likely rise even further.”
As millennials start families and enter their peak earning years, it makes sense for them to buy homes.
As for down payments, the pricey California cities of San Jose, San Francisco, and Los Angeles required the most significant down payments — an average of nearly $130,000 per home.
That’s more than three times as much as the down payment in the cheapest areas — St. Louis, Virginia Beach, and Oklahoma City. There, the average down payment was just $39,000.
LendingTree compared mortgage offers given to millennial borrowers with those given to the total population of mortgage seekers ages 18 to 80.
The report concludes that “though millennials are certainly not as financially well-off as older generations, they’re at a place where buying often makes the most sense. And as millennials age, younger generations will likely supplant them as the largest share of homebuyers on the market — even if those younger generations might also have to deal with increased financial hardships related to buying.”
Report Source: https://www.lendingtree.com/home/mortgage/most-popular-cities-millennial-homebuyers/?ccontent=TnL5HPStwNw&s1=TnL5HPStwNw&s2=TnL5HPStwNw-uzm4zSdAXGxwxlLAjpYM6g&ranMID=41202&ranEAID=TnL5HPStwNw&ranSiteID=TnL5HPStwNw-uzm4zSdAXGxwxlLAjpYM6g&PUBSID=2116208&PUBNAME=Skimlinks.com
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