Where Are Seniors Buying Homes?

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

Today’s real estate market remains highly challenging for many buyers. With a limited supply of homes and a high number of buyers, prices have soared to record heights over the past two years.

One of the underlying factors contributing to the current state of the market is generational. Real estate experts have noted that with an increasing number of older Americans aging in place, fewer homes are available for younger buyers.

With millennials (now America’s largest generation) currently aged 26 to 41 — a peak period for first- or second-time home buying — competition in the real estate market has been fierce. And as prices rise, younger buyers with lower savings or less pre-existing home equity than older buyers may have an even harder time purchasing.

Unfortunately for younger homebuyers, homeownership among older Americans remains high. In 2012 — the year after the first baby boomers turned 65 — the homeownership rate among those aged 65 and over peaked at 81.1%.

To determine the locations where the most seniors are buying homes, researchers at Construction Coverage calculated the share of home purchase loans in 2020 accounted for by homebuyers 65 years or older. The data used in this analysis is from the Federal Financial Institutions Examination Council’s Home Mortgage Disclosure Act. Only conventional, home purchase loans originated in 2020 were considered.

Here are the metropolitan areas where seniors are buying homes.

15. Richmond, VA

Richmond, Virginia
Sean Pavone / Shutterstock.com
  • 65+ share of home purchase loans: 7.4%
  • Median loan amount: $225,000
  • Median property value: $325,000
  • Median loan-to-value ratio: 80.0%
  • Median interest rate: 3.13%

14. San Diego-Chula Vista-Carlsbad, CA

The skyline of San Diego, where median rent is well below median mortgage payments
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  • 65+ share of home purchase loans: 7.4%
  • Median loan amount: $425,000
  • Median property value: $685,000
  • Median loan-to-value ratio: 69.4%
  • Median interest rate: 3.13%

13. Birmingham-Hoover, AL

Birmingham, Alabama
Sean Pavone / Shutterstock.com
  • 65+ share of home purchase loans: 7.8%
  • Median loan amount: $175,000
  • Median property value: $255,000
  • Median loan-to-value ratio: 80.0%
  • Median interest rate: 3.13%

12. Tulsa, OK

Tulsa Oklahoma
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  • 65+ share of home purchase loans: 7.9%
  • Median loan amount: $165,000
  • Median property value: $225,000
  • Median loan-to-value ratio: 80.0%
  • Median interest rate: 3.13%

11. San Antonio-New Braunfels, TX

San Antonio in winter
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  • 65+ share of home purchase loans: 8.2%
  • Median loan amount: $195,000
  • Median property value: $275,000
  • Median loan-to-value ratio: 80.0%
  • Median interest rate: 3.25%

10. Sacramento-Roseville-Folsom, CA

Sacramento, California
Andrew Zarivny / Shutterstock.com
  • 65+ share of home purchase loans: 8.4%
  • Median loan amount: $315,000
  • Median property value: $485,000
  • Median loan-to-value ratio: 75.0%
  • Median interest rate: 3.13%

9. Miami-Fort Lauderdale-Pompano Beach, FL

Miami, Florida
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  • 65+ share of home purchase loans: 8.5%
  • Median loan amount: $225,000
  • Median property value: $325,000
  • Median loan-to-value ratio: 75.0%
  • Median interest rate: 3.25%

8. Virginia Beach-Norfolk-Newport News, VA-NC

Virginia Beach, Virginia
JoMo333 / Shutterstock.com
  • 65+ share of home purchase loans: 8.9%
  • Median loan amount: $215,000
  • Median property value: $315,000
  • Median loan-to-value ratio: 80.0%
  • Median interest rate: 3.25%

7. Orlando-Kissimmee-Sanford, FL

Sean Pavone / Shutterstock.com
  • 65+ share of home purchase loans: 9.2%
  • Median loan amount: $205,000
  • Median property value: $285,000
  • Median loan-to-value ratio: 80.0%
  • Median interest rate: 3.25%

6. Riverside-San Bernardino-Ontario, CA

Riverside California neighborhood
Matt Gush / Shutterstock.com
  • 65+ share of home purchase loans: 10.0%
  • Median loan amount: $275,000
  • Median property value: $415,000
  • Median loan-to-value ratio: 75.0%
  • Median interest rate: 3.13%

5. Jacksonville, FL

Jacksonville, Florida
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  • 65+ share of home purchase loans: 11.4%
  • Median loan amount: $205,000
  • Median property value: $305,000
  • Median loan-to-value ratio: 79.8%
  • Median interest rate: 3.25%

4. Tampa-St. Petersburg-Clearwater, FL

Tampa, Florida
kevin-j-king / Shutterstock.com
  • 65+ share of home purchase loans: 11.7%
  • Median loan amount: $175,000
  • Median property value: $245,000
  • Median loan-to-value ratio: 80.0%
  • Median interest rate: 3.37%

3. Phoenix-Mesa-Chandler, AZ

Phoenix, Arizona
f11photo / Shutterstock.com
  • 65+ share of home purchase loans: 12.1%
  • Median loan amount: $235,000
  • Median property value: $335,000
  • Median loan-to-value ratio: 79.6%
  • Median interest rate: 3.25%

2. Las Vegas-Henderson-Paradise, NV

Las Vegas by night, with mountains
egd / Shutterstock.com
  • 65+ share of home purchase loans: 12.7%
  • Median loan amount: $245,000
  • Median property value: $335,000
  • Median loan-to-value ratio: 80.0%
  • Median interest rate: 3.25%

1. Tucson, AZ

Tucson, Arizona
Sean-Pavone / Shutterstock.com
  • 65+ share of home purchase loans: 18.5%
  • Median loan amount: $195,000
  • Median property value: $275,000
  • Median loan-to-value ratio: 80.0%
  • Median interest rate: 3.25%

Methodology

A man studies financial data at his computer
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The data used in this analysis is from the Federal Financial Institutions Examination Council’s Home Mortgage Disclosure Act. Only conventional, home purchase loans originated in 2020 were considered.

To determine the locations where the most seniors are buying homes, researchers calculated the share of home purchase loans in 2020 accounted for by homebuyers 65 years or older. In the event of a tie, the location with the higher median loan amount was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 residents were included.

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