Millennials are once again the largest group of homebuyers in the country. In some metropolitan areas, home prices are 13 times higher than in other areas.
Reports released this week by personal finance websites Intellectual assets The data analyzed comes from U.S. Census Bureau and the Home Mortgage Disclosure Act (HMDA) of the 40 largest metropolitan areas in the United States to identify key markets for millennial homebuyers.
SmartAsset analyzed 2022 HMDA data to find mortgages for people aged between 25 and 44 years old. To rank. Property values and median incomes of millennial homeowners were also considered.
Raleigh, the capital of North Carolina, leads the way, with 6.5% of Millennials in the Raleigh-Cary metropolitan area becoming homeowners in 2022. The median purchase price of these homes is $445,000, and the median mortgage interest rate is 4.4%.
Each of the top 12 cities has at least 5% of millennial residents purchasing homes. These include Nashville, Denver, Charlotte, Indianapolis, Phoenix, Jacksonville, Virginia Beach, Cincinnati, Austin, Tampa and Milwaukee.
Notably, by 2022, the median income for new homeowners in the 40 largest metro areas will be $109,000.
SmartAsset determined that San Francisco is the most difficult of the largest metro areas in the United States for aspiring millennial buyers. Less than 1% of Bay Area millennials will buy a home in 2022, in part due to affordability issues. That year, the median home price in San Francisco, Oakland and Berkeley was $1.59 million, and the median loan amount was $956,000.
Measured by number of buyers, Atlanta ranked No. 1 with more than 83,000 millennial-driven purchases in 2022. When considering the percentage of purchases made by millennials, Atlanta ranks 15th with a 4.7% share.
Although Millennials are the largest group of homebuyers in a generation, they face many obstacles on the way to achieving this status.
Last month, Fortune magazine published a story describing the “showdown” between Millennials looking to enter the housing market and Baby Boomers looking to age in place. This has led to low levels of for-sale inventory, exacerbated by a lock-in effect from homeowners who want to keep their low-rate loans.
January 2024 redfin tuna The analysis shows that by 2022, empty-nest baby boomers will own 28% of the nation’s largest homes (three or more bedrooms), while Millennials will own only 14%. This runs counter to the share of the U.S. population that Millennials and Baby Boomers make up, which are 28% and 27% respectively.
Baby boomer empty nesters own roughly twice as many homes with three or more bedrooms as millennials with children, according to a report redfin tuna Published Tuesday.
