Most people buy homes where they can afford to buy homes regardless of their ages. For millennial homebuyers, plentiful jobs and an adequate inventory of starter level homes are critical. Bottom line, large cities are unaffordable for most millennials who want to become homeowners.
Lending Tree, an online lending exchange that connects consumers with multiple lenders, banks and credit partners, just released its latest February 2017 to February 2018 study to determine where millennial homebuyers are most and least likely choose to live.
Lending Tree compared the mortgage requests and offers that people 35 years and younger made on homes with mortgage seekers of all ages. The millennial share of requests during this 2/17 – 2/18 time period made up 32.5% of all such mortgage and offer requests made to Lending Tree. The average loan amount requested by a millennial was $166,863.
- Des Moines
- Fort Wayne
- Grand Rapids
- Fort Myers
- Palm Bay
- Las Vegas
- Price was the determining factor for many millennial homebuyers. You’ll not that many of these markets are well below current median price levels.
In some of these smaller cities, there is a tendency to form households at an earlier age than in larger cities. Additionally, less educated millennials tend to be more ready for homeownership at younger ages than more educated millennials. The median age of more educated millennial homebuyers is 29.5 years.
Remember too that smaller markets have lower barriers of entry when it comes to credit scores.