Despite challenging conditions for first-time homebuyers, Millennials are actively engaging in the housing market, especially in the nation’s largest metros, according to a new analysis from LendingTree.
The analysis found that Millennials– people aged 25 to 40 in 2021– make up a majority of homebuyers in most of the US’s largest metros, especially Denver, Seattle, and Boston.
Of mortgages offered in Denver, 63.3% were offered to Millennials. In Seattle, 61.35% were offered to Millennials, and in Boston, 61.08%.
Miami, Jacksonville, and Tampa have the smallest share of buyers in this age group, at 46.54% across all three markets.
San Francisco, New York, and San Jose have the greatest portion of older Millennials, with an average age of 33.51%, while Indianapolis, Salt Lake City, and Phoenix have the highest share of younger millennials in the housing market. LendingTree suggests that might be due to how expensive markets like New York are, forcing potential buyers to save for a longer period before looking for a loan.
Millennials in San Francisco, San Jose, and San Diego have the highest average credit score (733), while Memphis, Birmingham, AL, and Virginia Beach, VA, saw the lowest average (702).
Millennials had to put down the largest down payments in San Jose, San Francisco, and Seattle, averaging $104,896. St. Louis, Memphis, and Oklahoma City had the lowest average down payment, $30,551.
Many Millennials have entered their 30s, a prime homebuying age, during the housing boom of the last two years and face high competition from older, richer buyers and real estate investors. They tend to spend more of their monthly income on homeownership costs than other generations and are at the greatest risk of becoming house-rich and cash-poor.
But they’re expected to keep the market hot moving forward. During a webinar, CEO and Co-Founder of HouseCanary Jeremy Sicklick said the sheer number of Millennials in the market will continue to drive demand for the next decade.