Home Buying Millennials Targeting Denver

Millennials currently make up the largest group of homebuyers in the United States, ahead of the older, wealthier Gen Xers, followed by baby boomers. LendingTree analyzed mortgage deals offered to millennial users in the country’s 50 largest metros from January to December 2021, to see which popular areas they’re looking to buy in.

While the pandemic has forced some millennials to put their home buying plans on hold, many are still actively engaging in the housing market, according to Jacob Channel, senior economic analyst at LendingTree.

Millennial homebuyers in San Francisco, New York and San Jose, Calif., are the oldest found in the study, with an average age of around 33 to 34. The metros with the youngest Millennials, aged around 32, were in Indianapolis, Salt Lake City and Phoenix. Because metros like San Francisco and New York are extremely expensive, millennials often need extra time to save up before buying a home.

The three metropolises where millennial homebuyers have the highest average credit scores are all in California: San Francisco, San Jose and San Diego. The average credit score for these three areas was 733. The average scores for millennial homebuyers in the metros where the lowest credit scores were found, an average of 702, were Memphis, Tennessee, Birmingham , Alabama and Virginia Beach, Virginia.

Expensive metros like San Jose, San Francisco and Seattle were the areas that required millennials to put the heaviest down payments on their homes. The average down payment in these areas was $104,896. That number is more than three times the average down payment of $30,551 in the metros where down payments were lowest, in St. Louis, Memphis and Oklahoma City.

The most popular metros for millennial homebuyers are:

1) Denver

  • Share of real estate loans offered to millennials: 63.63%
  • Average millennial age: 32.09
  • Average credit score among millennials: 723
  • Average down payment among millennials: $53,750

2) Seattle

  • Share of real estate loans offered to millennials: 61.35%
  • Millennial average age: 32.87
  • Average credit score among millennials: 725
  • Average down payment among millennials: $85,677

3) Boston

  • Proportion of real estate loans offered to millennials: 61.08%
  • Average millennial age: 32.73 years
  • Average credit score among millennials: 728
  • Average down payment among millennials: $59,599

The least popular metros for millennial homebuyers are:

1) Miami

  • Share of real estate loans offered to millennials: 46.01%
  • Millennial average age: 32.95
  • Average credit score among millennials: 718
  • Average down payment among millennials: $49,303

2) Jacksonville, Florida

  • Share of real estate loans offered to millennials: 46.74%
  • Millennial average age: 32.64 years
  • Average credit score among millennials: 712
  • Average down payment among millennials: $34,475

3) Tampa, Florida

  • Proportion of real estate loans offered to millennials: 46.88%
  • Average millennial age: 32.50 years
  • Average credit score among millennials: 712
  • Average down payment among millennials: $38,754

While many millennials looking to buy may not have much experience navigating the housing market, Channel suggests that a strong credit history and higher credit scores can show lenders that they are able to manage their debts. This would make it easier to find a lender willing to work with the consumer, offering a lower rate.

To read the full report, including charts and methodology, Click here.

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