Millennials currently comprise the largest group of homebuyers in America, surpassing baby boomers. Due to the pandemic, some millennials decided to put their home buying plans on hold. However, many millennials are still looking to jump on the record-low mortgage rates to buy a house.
LendingTree recently analyzed mortgage purchase requests across the nation’s 50 largest metros. Some of the key findings include the most popular and least popular cities to buy a home in among millennial homebuyers. The top three cities are: San Jose, CA, Boston, MA, and Denver, CO.
Although San Jose is the hotspot for millennial homebuyers, this city is one of the most expensive cities to buy a home. Millennials who moved to San Jose had the highest down payment at $158,040 and the current home value is $1,275,627.
Moving East towards Boston, a typical home is priced above 1 million dollars. Since Boston is an educational and technological hub, many millennials decide to stay in the city after they furthered their education at the many colleges and universities Boston has to offer. Many tech startups and companies often attract younger and wealthier workers who can afford to live in an expensive city like Boston.
Denver, which came in third place, is far more affordable compared to the other cities in this study. The average loan requested from Millennial Denver homebuyers was $354,433. Denver metro’s average home value is $474,618.
The warm weather does not seem to sway millennial homebuyers because the least popular cities are Las Vegas, NV, Tampa, FL, and Phoenix, AZ. Unfortunately, these cities’ home values are far cheaper compared to other popular metros. In Las Vegas, the average home values are at $224,259, while Tampa prices are a bit higher at $250,431. Phoenix has the highest values of the three metros at $321,359.
Following millennial home buying trends is important not only because millennials make up the largest group of homebuyers, but also it gives you a clearer look at the ways in which the current real estate market is changing.