Millennials are getting older and beginning to enter the housing market. The largest portion of home buyers is younger than 35, according to the National Association of Realtors’ Home Buyer and Seller Generational Trends. Additionally, nearly one-third of the housing market consists of first time home buyers.
As more younger buyers begin to search for homes and mortgages, it’s important that people in the real estate industry are aware of the trends associated with this generation. As many industry professionals have noted, millennials can seem quite different than their parents and grandparents before them when it comes to major life decisions like marriage, starting a family and buying a home.
Many real estate industry leaders have set to figure out where, exactly, millennials are searching for their first homes. Though the results vary from source to source, they all hit on the same theme: Younger home buyers are searching in areas where housing is affordable and where they might be able to get a low cost mortgage.
“Younger buyers are in search of affordable housing.”
SmartAsset, a personal finance technology company, found that Cedar Rapids, Iowa, is a popular place for millennials to settle down, putting it in the No. 2 spot. The city touts high graduation rates in comparison to the national average, indicating a good school district. Whether those millennial home buyers plan on having kids or not, buying a home near a good school is always a plus.
Cedar Rapids is located in Linn County, near the eastern side of the state. Fortune also pointed to this area as one of the top places for millennials to buy a home, stating that it is No. 7 on the list of top 10 counties for young home buyers.
Higher on Fortune’s list is Denver County, Colorado. Fortune pointed out that some of millennials’ top concerns when searching for a home and an affordable home loan are the ability to negotiate good front-end ratios. This shows that two of millennials’ top preferences in a location are affordable homes and the potential for a well-paying job.
With these factors in mind, Denver is a good candidate, Realtor.com pointed out. Coming in ninth on the real estate news source’s list of top 10 cities for millennials, Denver’s median listing price is $449,000. This is higher than the national average – the U.S. Census Bureau listed February’s average home price at $348,900 – though Forbes reported the median price to be below this at $261,000.
The city also boasts a growing supply of tech jobs, which are generally attached to a nice salary. Forbes reported the average household income to be $65,870. This is also above the national average of $53,657, as reported by CNN.
In addition to decent home prices and job opportunities, Realtor.com noted that Denver has many of the things millennials yearn for: mountains to hike, craft breweries to visit and bikes to share.
Though Colorado is known for its 300 days of sunshine every year, many millennials are headed to another warm and sunny state. Realtor.com named two Texas cities in its list of top 10 millennial home buyer destinations: Austin and Houston.
Like Denver, Austin has been attracting many jobs in the tech sector, though there are plenty of opportunities for young pharmaceutical and biotechnical professionals as well. The unemployment rate is at 3.3 percent, well below the national average. This could be why the city has 24 percent more millennials than the country as a whole.
Houston has its own favorable qualities that draw in millennials, including 26 Fortune 500 companies. The city has a 14.4 percent share of older millennials, those between the ages of 24 and 35, which are the ones most likely to be buying homes right now.
Buying a home for the first time is an important undertaking. Millennials have shown they don’t make these choices lightly or quickly, and many are weighing the economic benefits of a home’s location along with the features of the actual home.
For more information on how to obtain a low cost home loan in your city, contact the professionals at Lenox/WesLend Financial or call 844-225-3669. As heard on the radio, it’s the biggest no-brainer in the history of mankind.