Austin, San Jose, Pittsburgh and Seattle have the highest percentages of potential Millennial homebuyers.
Millennial Buyers Now Represent 51% of Home Purchase Mortgage Applications
Millennial homebuyers have arrived. Younger Millennials are entering their first-time home buying years and older Millennials are approaching the age range for move-up home purchases.
According to CoreLogic’s Loan Application Database, Millennials represented 67% of first-time home purchase applications and 37% of repeat home purchase applications during 2021. All toll, Millennials represented 51% of all home purchase mortgage applications in 2021, an uptick of +5% from 2019.
Where Are Millennials Buying?
Generally, Millennials have greater buying power in affordable markets however, in high-cost metros where there are plenty of high-tech job opportunities, Millennials are well represented.
Metros with high-tech job opportunities that attract Millennial buyers include:
- San Jose – 64% of mortgage applicants are Millennials
- Austin – 61% of mortgage applicants are Millennials
- Seattle – 61% of mortgage applicants are Millennials
- Pittsburgh – 61% of mortgage applicants are Millennials
- Boston – 60% of mortgage applicants are Millennials
- San Francisco – 60% of mortgage applicants are Millennials
- Salt Lake City, Milwaukee, Minneapolis and Buffalo all had majority of mortgage applicants being Millennials
Metros with lowest percentages of Millennials applying for mortgages include:
- Miami – 43% of Millennials applying for a mortgage
- Las Vegas – 43% of Millennials applying for a mortgage
- Orlando – 44% of Millennials applying for a mortgage
- Tampa – 44% of Millennials applying for a mortgage
- Phoenix – 45% of Millennials applying for a mortgage
- Jacksonville – 45% of Millennials applying for a mortgage
Share of Millennial Homebuyers Increases with Increased Share of High-Tech Jobs
As you can imagine, there is a positive correlation between the change in the share of Millennial homebuyers and the share of high-tech employment opportunities. Millennial homebuyers in San Jose, San Francisco and Boston had the highest average credit scores and income plus they made bigger down payments. On the other hand, older homebuyers who were selling their homes and relocating to more affordable metros naturally reduced their homeowner share in high-cost areas while increasing their homeowner share in more affordable metros areas in Florida and Arizona.
Thanks to CoreLogic.