Owning a home has always been the great ‘American Dream.’ Millennials – those born between 1981 and 1996 – have been struggling with stagnant wages, heavy student loan debts, credit card debts, and rising housing costs. But millennials are also getting older, which means their salaries are getting higher and their net worth is increasing. Now more and more millennials see homeownership as an attractive proposition. Here we take a look at the top 10 most popular US cities for millennial home buyers.
Buying a house in large cities such as San Francisco, Los Angeles, and New York City might be beyond the reach of most millennials. The median home price is San Francisco is $1.4 million. Leading online loan marketplace LendingTree says the biggest challenges for millennial home buyers is having a good credit history and enough money for a down payment.
To find out where millennials are looking to purchase homes, LendingTree analyzed new purchase mortgage requests in the 50 largest metros on its online marketplace between January and November 2019. The online lending marketplace compared the mortgage requests and offers for millennial borrowers with requests from the total population of mortgage seekers in a city.
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10- Detroit, Michigan
Between January and November 2019, 53.7% of mortgage requests were from people aged 23 to 38 years. The average age of millennial home buyers in Detroit is 30.2 years. According to LendingTree, the average requested loan amount was $156,582 and average down payment was $23,846. Millennials in the Motor City have a median income of $51,700 a year.
9- St. Louis, Missouri
According to an earlier study from Redfin, St. Louis is one of the most affordable housing markets in the country. The median home price in St. Louis is $190,150. The average age of millennial home buyers in the city is 30.6 years. Millennials in St. Louis requested an average loan of $152,258, and made an average down payment of just $20,507, which is the lowest on this list.
8- Austin, Texas
Austin is the fastest growing large city in the United States, according to WalletHub. It is also one of the hardest working cities in the country. Though it is one of the favorite places of retirees, Austin is also an attractive destination for millennials. LendingTree found that 53.8% of purchase requests were from millennials. The average credit score of millennial home buyers is 677. On average, they made a down payment of $40,571 and requested $252,590 of loan.
7- Milwaukee, Wisconsin
With an estimated population of 600,000, Milwaukee is the largest city in Wisconsin. Milwaukee’s population has been falling steadily for the last several years, which has made housing relatively more affordable in the city. Millennials made an average down payment of $25,700 and requested a loan of $177,412. According to LendingTree, 54.3% of all mortgage requests were from millennials.
6- Pittsburgh, Pennsylvania
Pittsburgh is known as the Steel City or the City of Bridges. It’s a lucrative market for potential home buyers. The median home price in Pittsburgh is $180,000 and the median household income is $56,073. Millennials requested an average loan of $144,414 and paid down $21,663. About 54.5% of all requests in Pittsburgh were from millennials.
5- Salt Lake City, Utah
According to LendingTree, 54.9% of mortgage requests in Salt Lake City came from millennials. The average millennial credit score in the city was 675. They requested an average loan of $264,275, and made a down payment of $39,071. Thanks to its robust economic growth and affordable housing market, Salt Lake City is an attractive place for the first-time home buyers.
4- Denver, Colorado
With 716,000 people, it’s the most populous city in Colorado. The city offers immense economic and employment opportunities because of its strategic location. The average credit score of millennial home buyers in Denver is 682, and a staggering 55.3% of mortgage requests came from millennials. On average, they put down $49,361 and requested a loan of $316,524.
3- San Jose, California
San Jose is one of the most expensive housing markets in the country. Even though the median household income is pretty high at $105,809, it’s not enough to buy a house. The median home price in San Jose is $1.15 million. Most of the millennial home buyers work in the tech industry. Their average credit score is 720. That’s much higher than the average credit score of millennial home buyers across the 50 largest metros, which is 658. Millennials on average made a down payment of $148,098 and requested a loan of $637,201 in San Jose.
2- Buffalo, New York
Buffalo is located close to the Niagara Falls. In Buffalo, the median household income is $53,534 and the median home prices are $169,999. No wonder it’s the second most popular city for millennial home buyers. The average age of millennial home buyers is 30.2 years and their average credit score is 652. Millennials made an average down payment of $20,777 and requested a loan of $137,739. A little over 56% of all mortgage requests were from millennials.
1- Minneapolis, Minnesota
Minneapolis in Minnesota has been named the most popular city for millennial home buyers. According to LendingTree, millennials accounted for 56.2% of mortgage requests. Their average credit score was 672. On average, millennials made a down payment of $31,812 and requested a loan of $219,590.