Millennials currently make up the largest group of homebuyers in the U.S., ahead of older and wealthier Gen Xers, followed by Baby Boomers. LendingTree [1] analyzed mortgage offers given to millennial users across the nation’s 50 largest metros from January through December 2021, to see which popular areas they're looking to buy.
While the pandemic has forced some millennials to put their homebuying plans on hold, plenty are still actively engaging in the housing market, according to LendingTree Senior Economic Analyst Jacob Channel.
Millennial homebuyers in San Francisco, New York and San Jose, California, are the oldest found in the study, with an average age around 33- to 34 years old. The metros with the youngest millennials, roughly aged 32, were found in Indianapolis, Salt Lake City, and Phoenix. As metros like San Francisco and New York are extremely expensive, millennials often find themselves needing more time to save before they purchase a home.
The three metros where millennial homebuyers have the highest average credit scores are all found in California—San Francisco, San Jose, and San Diego. The average credit score for these three areas was 733. Average scores for millennial homebuyers in 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 down the largest down payments on their homes. The average down payment across these areas was a whopping $104,896. That number is more than three times higher than the average down payment of $30,551 across the metros where down payments were the smallest, found in St. Louis, Memphis, and Oklahoma City.
The most popular metros for millennial homebuyers are as follows:
1) Denver
- Share of mortgages offered to millennials: 63.63%
- Average millennial age: 32.09
- Average credit score among millennials: 723
- Average down payment amount among millennials: $53,750
2) Seattle
- Share of mortgages offered to millennials: 61.35%
- Average millennial age: 32.87
- Average credit score among millennials: 725
- Average down payment amount among millennials: $85,677
3) Boston
- Share of mortgages offered to millennials: 61.08%
- Average millennial age: 32.73
- Average credit score among millennials: 728
- Average down payment amount among millennials: $59,599
The least popular metros for millennial homebuyers are:
1) Miami
- Share of mortgages offered to millennials: 46.01%
- Average millennial age: 32.95
- Average credit score among millennials: 718
- Average down payment amount among millennials: $49,303
2) Jacksonville, Florida
- Share of mortgages offered to millennials: 46.74%
- Average millennial age: 32.64
- Average millennial credit score among millennials: 712
- Average down payment amount among millennials: $34,475
3) Tampa, Florida
- Share of mortgages offered to millennials: 46.88%
- Average millennial age: 32.50
- Average credit score among millennials: 712
- Average down payment amount among millennials: $38,754
While many millennials seeking to buy may not have much experience in navigating the housing market, Channel suggests a solid credit history and higher credit scores may show lenders they’re capable of managing debt. 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 [2].