LendingTree recently compiled data on millennial real estate transactions to determine the most popular cities that the largest group of homebuyers in the US is currently looking to invest in. The survey looked at 50 of the largest metropolitans throughout the US to see which ones were more saturated with millennial buyers.
LendingTree’s Chief Economist and Vice President Tendayi Kapfidze helped lead the study, and claimed that the goal was to figure out the most popular cities that this generation were gravitating towards, as their real estate transactions within the next year could very well help stimulate local economies which would benefit the entire nation as well. Beyond the most popular, the survey also determined the least popular cities as well as where the youngest individuals in the millennial generation were gravitating towards.
“We found that some of the more popular cities in the US were most attractive to older millennials with high-paying jobs in the tech industry.”
Two of the most popular cities being San Jose and Boston, which are also some of the country’s most expensive, hence why these millennial residents all have high-paying jobs in the tech industry. Millennial’s living in San Jose, which ranked as the number one city being invested in, had the highest down payments within the last year, peaking at $158,040.
According to Kapfidze, “those borrowers had the highest average requested loan amount of $704,318. The current home value in the San Jose metro is $1,275,627.” Boston is also a giant tech hub for the older millennial generation, especially for those who went to school in the Boston area and were able to get an occupation right after graduation.
Ranking at number two the typical home in Boston currently lists for above $1 million, but “tech companies attract younger and wealthier workers that can afford these expensive cities,” Kapfidze explained.
Denver, Colorado came in at number three on the list of most popular metropolitans, as this market is much cheaper when compared to the top two cities. LendingTree’s data shows that the average loan requested from Millennial homebuyers in Denver is $345,433, and the average home value in the city is $474,618.
Contrary to popular belief, cities with a warmer climate, such as Las Vegas, Tampa, or Phoenix, actually rank lowest on the list of popular cities for millennial homebuyers. The home values in these areas have subsequently risen due to the lack of action within the past year while the prices continue to drop.
“With Millennials as the largest home buying segment, our mid-December data isn’t showing people fleeing those urban cores,” Kapfidze explained, adding that after a year of individuals fleeing to the suburbs to wait out the pandemic, major metropolitans in the US are about to see a major influx in young buyers, which will thus help the economy in America recover as well.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at email@example.com.