Editor's Note: This story originally appeared on Construction Coverage.
Despite a modest recent decline in prices from COVID-era highs, housing affordability remains a challenge for Americans, particularly millennials entering their prime homeownership years.
Millennials are squarely in the age range where Americans typically get ready to settle down, form households, and have children — all of which require more space, and for many, buying property.
Yet while median millennial income has increased in the last five years, it was not until recent years that it outpaced the growth in home purchase prices for millennials.
In spite of the elevated gap between home prices and incomes for millennial buyers, millennials are entering their prime earning years, making it a pivotal time to buy.
Millennials are also entering the years where they are likely to purchase more expensive homes.
The following is a breakdown of where millennials are buying the most expensive homes conducted by Construction Coverage. For more detailed information, refer to the methodology section at the end.
15. Dallas-Fort Worth-Arlington, TX
- Difference in home value between millennials and all buyers: +2.2%
- Median home value (millennial buyers): $465,000
- Median home value (all buyers): $455,000
- Median income (millennial buyers): $144,000
- Median income (all buyers): $144,000
14. Raleigh-Cary, NC
- Difference in home value between millennials and all buyers: +2.2%
- Median home value (millennial buyers): $465,000
- Median home value (all buyers): $455,000
- Median income (millennial buyers): $138,000
- Median income (all buyers): $137,000
13. Atlanta-Sandy Springs-Alpharetta, GA
- Difference in home value between millennials and all buyers: +2.3%
- Median home value (millennial buyers): $445,000
- Median home value (all buyers): $435,000
- Median income (millennial buyers): $132,000
- Median income (all buyers): $129,000
12. Tampa-St. Petersburg-Clearwater, FL
- Difference in home value between millennials and all buyers: +2.4%
- Median home value (millennial buyers): $425,000
- Median home value (all buyers): $415,000
- Median income (millennial buyers): $132,000
- Median income (all buyers): $129,000
11. Houston-The Woodlands-Sugar Land, TX
- Difference in home value between millennials and all buyers: +2.7%
- Median home value (millennial buyers): $385,000
- Median home value (all buyers): $375,000
- Median income (millennial buyers): $137,000
- Median income (all buyers): $137,000
10. Minneapolis-St. Paul-Bloomington, MN-WI
- Difference in home value between millennials and all buyers: +2.7%
- Median home value (millennial buyers): $385,000
- Median home value (all buyers): $375,000
- Median income (millennial buyers): $116,000
- Median income (all buyers): $113,000
9. Seattle-Tacoma-Bellevue, WA
- Difference in home value between millennials and all buyers: +2.7%
- Median home value (millennial buyers): $765,000
- Median home value (all buyers): $745,000
- Median income (millennial buyers): $185,000
- Median income (all buyers): $178,000
8. San Francisco-Oakland-Berkeley, CA
- Difference in home value between millennials and all buyers: +2.7%
- Median home value (millennial buyers): $1,135,000
- Median home value (all buyers): $1,105,000
- Median income (millennial buyers): $258,000
- Median income (all buyers): $250,000
7. Grand Rapids-Kentwood, MI
- Difference in home value between millennials and all buyers: +3.2%
- Median home value (millennial buyers): $325,000
- Median home value (all buyers): $315,000
- Median income (millennial buyers): $100,000
- Median income (all buyers): $97,000
6. Cincinnati, OH-KY-IN
- Difference in home value between millennials and all buyers: +3.3%
- Median home value (millennial buyers): $315,000
- Median home value (all buyers): $305,000
- Median income (millennial buyers): $108,000
- Median income (all buyers): $104,000
5. Birmingham-Hoover, AL
- Difference in home value between millennials and all buyers: +3.3%
- Median home value (millennial buyers): $315,000
- Median home value (all buyers): $305,000
- Median income (millennial buyers): $102,000
- Median income (all buyers): $99,000
4. Detroit-Warren-Dearborn, MI
- Difference in home value between millennials and all buyers: +3.5%
- Median home value (millennial buyers): $295,000
- Median home value (all buyers): $285,000
- Median income (millennial buyers): $100,000
- Median income (all buyers): $96,000
3. Cleveland-Elyria, OH
- Difference in home value between millennials and all buyers: +3.9%
- Median home value (millennial buyers): $265,000
- Median home value (all buyers): $255,000
- Median income (millennial buyers): $101,000
- Median income (all buyers): $96,000
2. Buffalo-Cheektowaga, NY
- Difference in home value between millennials and all buyers: +3.9%
- Median home value (millennial buyers): $265,000
- Median home value (all buyers): $255,000
- Median income (millennial buyers): $95,000
- Median income (all buyers): $92,000
1. Chicago-Naperville-Elgin, IL-IN-WI
- Difference in home value between millennials and all buyers: +5.8%
- Median home value (millennial buyers): $365,000
- Median home value (all buyers): $345,000
- Median income (millennial buyers): $120,000
- Median income (all buyers): $114,000
Methodology
The data used in this analysis comes from the Federal Financial Institutions Examination Council’s 2023 Home Mortgage Disclosure Act.
To determine the locations where millennials are buying the most expensive homes, researchers at Construction Coverage compared the median price for conventional residential homes with an originated mortgage in 2023 for millennials and all buyers.
Millennials were defined to be ages 25 to 44 in the year 2023. In the event of a tie, the location with the greater median millennial home value was ranked higher.
To improve relevance, only metropolitan areas with complete data were included.
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