Millennials currently make up a higher portion of the home buyer population in the Midwest “heartland” markets than they do in the more expensive coastal metros, according to from the October 2016 Ellie Mae Millennial Tracker report, a subset of the Ellie Mae Origination Insight Report. The Millennial Tracker aggregates mortgage data from applicants born between 1980 and 1999.
The most popular city for this age group was Minneapolis, Minn., where 44% of home purchases were made by Millennials in October. Philadelphia came in a close second at 43%, followed by St. Louis at 42% and Chicago and Detroit at 40%. Conversely, the high-priced major metros in Florida and California sport the smallest portions of Millennial buyers. Miami came in last at 27%, followed by Los Angeles at 29% and San Francisco, San Diego and Tampa-St. Petersburg at 30%.
“As housing prices continue to rebound, Millennials are increasingly representing a higher percentage of home owners in the middle of the country, where they can get more home for their money,” said Joe Tyrrell, executive vice president of corporate strategy at Ellie Mae, in a release. “The average appraised value of homes purchased by this new generation of buyers was $223,153 in October, a modest increase from $221,383 in September, but nearly a five percent increase from when it was $212,939 in June.”
The average age of a Millennial mortgage applicant is 28.7, according to the Millennial Tracker. Slightly more than half of applicants are single (51%), while 49% are married. Men are listed as the primary borrower on 64% of applications, compared to 33% for women. The average FICO score among borrowers was 722, and they preferred conventional loans (57%) over FHA loans (40%), VA loans (1%) or unspecified financing options (1%). Their average loan amount was $182,498.