Where Are Millennials Buying Homes?

Editor's Note: This story originally appeared on Construction Coverage.

Historically low interest rates, higher family savings, and new-found work-from-home opportunities driven by pandemic-related restrictions have combined to stimulate housing demand that raised the median price of existing single-family homes by 39% from 2018 to 2021.

This boom impacted all ages of homebuyers and was particularly pronounced among millennials, who are now in their prime homebuying years.

Since 2014, millennials have comprised the largest share of homebuyers in the U.S. Today, the generation makes up about 37% of all homebuyers, according to a recent National Association of Realtors report, with Gen Xers comprising the next biggest group at 24%. A survey of millennial homebuyers in late 2020 revealed that over half had accelerated their planned home purchases in response to the pandemic.

To determine the locations with the most millennial homebuyers, researchers at Construction Coverage calculated the millennial share of home purchase loans originated in 2020. Due to data availability limitations, the 25- to 34-year-old age cohort was used to approximate the millennial generation. In the event of a tie, the location with the greater total millennial home purchase loans was ranked higher. The data used in this analysis is from the Federal Financial Institutions Examination Council’s Home Mortgage Disclosure Act.

Here are the metro areas with the most millennial homebuyers.

15. Chicago-Naperville-Elgin, IL-IN-WI

• Millennial share of home purchase loans: 36.2%
• Total millennial home purchase loans: 36,889
• Median loan amount: $245,000
• Median loan-to-value ratio: 90.0%
• Median interest rate: 3.1%

14. Columbus, OH

• Millennial share of home purchase loans: 36.3%
• Total millennial home purchase loans: 9,821
• Median loan amount: $225,000
• Median loan-to-value ratio: 91.8%
• Median interest rate: 3.2%

13. Milwaukee-Waukesha, WI

• Millennial share of home purchase loans: 36.5%
• Total millennial home purchase loans: 7,065
• Median loan amount: $225,000
• Median loan-to-value ratio: 90.0%
• Median interest rate: 3.3%

12. San Jose-Sunnyvale-Santa Clara, CA

• Millennial share of home purchase loans: 36.6%
• Total millennial home purchase loans: 5,563
• Median loan amount: $765,000
• Median loan-to-value ratio: 80.0%
• Median interest rate: 2.9%

11. Boston-Cambridge-Newton, MA-NH

• Millennial share of home purchase loans: 36.6%
• Total millennial home purchase loans: 19,690
• Median loan amount: $425,000
• Median loan-to-value ratio: 85.0%
• Median interest rate: 3.0%

10. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

• Millennial share of home purchase loans: 36.8%
• Total millennial home purchase loans: 21,560
• Median loan amount: $265,000
• Median loan-to-value ratio: 90.0%
• Median interest rate: 3.1%

9. Denver-Aurora-Lakewood, CO

• Millennial share of home purchase loans: 36.9%
• Total millennial home purchase loans: 18,841
• Median loan amount: $385,000
• Median loan-to-value ratio: 90.0%
• Median interest rate: 3.1%

8. Seattle-Tacoma-Bellevue, WA

• Millennial share of home purchase loans: 37.1%
• Total millennial home purchase loans: 20,420
• Median loan amount: $475,000
• Median loan-to-value ratio: 85.0%
• Median interest rate: 3.0%

7. Rochester, NY

• Millennial share of home purchase loans: 37.4%
• Total millennial home purchase loans: 3,695
• Median loan amount: $155,000
• Median loan-to-value ratio: 95.0%
• Median interest rate: 3.1%

6. Minneapolis-St. Paul-Bloomington, MN-WI

• Millennial share of home purchase loans: 38.1%
• Total millennial home purchase loans: 21,954
• Median loan amount: $275,000
• Median loan-to-value ratio: 94.2%
• Median interest rate: 3.1%

5. Detroit-Warren-Dearborn, MI

• Millennial share of home purchase loans: 38.2%
• Total millennial home purchase loans: 17,655
• Median loan amount: $205,000
• Median loan-to-value ratio: 95.0%
• Median interest rate: 3.2%

4. Salt Lake City, UT

• Millennial share of home purchase loans: 38.3%
• Total millennial home purchase loans: 7,367
• Median loan amount: $325,000
• Median loan-to-value ratio: 94.5%
• Median interest rate: 3.1%

3. Pittsburgh, PA

• Millennial share of home purchase loans: 38.6%
• Total millennial home purchase loans: 8,462
• Median loan amount: $195,000
• Median loan-to-value ratio: 90.0%
• Median interest rate: 3.1%

2. Grand Rapids-Kentwood, MI

• Millennial share of home purchase loans: 39.6%
• Total millennial home purchase loans: 5,859
• Median loan amount: $205,000
• Median loan-to-value ratio: 93.0%
• Median interest rate: 3.3%

1. Buffalo-Cheektowaga, NY

• Millennial share of home purchase loans: 40.8%
• Total millennial home purchase loans: 3,792
• Median loan amount: $165,000
• Median loan-to-value ratio: 95.0%
• Median interest rate: 3.1%

Methodology

The data used in this analysis is from the Federal Financial Institutions Examination Council’s Home Mortgage Disclosure Act. Only conventional home purchase loans approved in 2020 were considered.

To determine the locations with the most millennial homebuyers, researchers calculated the millennial share of all approved home purchase loans. For the purpose of this analysis, the 25- to 34-year-old age cohort was used to approximate the millennial generation. In the event of a tie, the location with the greater total millennial home purchase loans was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 residents were included.