LendingTree® on Tuesday released the findings of its study on the most popular cities for millennial home buyers, with the top three including Des Moines, Pittsburgh and Buffalo.
LendingTree analyzed mortgage requests and offers for borrowers ages 35 years and under between Feb. 1, 2017 and Feb. 1, 2018, along with requests from the total population of mortgage-seekers based on the location of the property to be mortgaged. The city rankings are generated from the percentage of total purchase mortgage requests received by LendingTree from borrowers in the millennial generation.
Most popular cities among millennial home buyers:
1. Des Moines, Iowa
· Share of purchase mortgage requests coming from millennials: 42.4% · Average loan amount: $141,785
2. Pittsburgh, Pa.
· Share of purchase mortgage requests coming from millennials: 41.9%
· Average loan amount: $120,093
3. Buffalo, N.Y
· Share of purchase mortgage requests coming from millennials: 40.5%
· Average loan amount: $114,087
Key findings:
Millennial homebuyers make up one-third of mortgage requests. 32.5% of all mortgage requests through LendingTree between Feb. 1, 2017 and Feb. 1, 2018 came from consumers 35 years and younger. The average loan amount requested from this age group is $166,863.
Where millennials aren't vying for home ownership. At the other end of the scale, Sarasota, Fla., Fort Myers Fla. and Honolulu had lowest shares of millennial buyers at 17.9%, 19.8% and 21.8% respectively. The Florida communities are popular with retirees while Honolulu is a high-cost metro, which makes it challenging for millennial buyers who are just starting out on building financial and real assets.
Other findings:
The study also looked at other borrower characteristics and found some interesting results on the average age of the borrowers and their credit scores.
Highest average age
- San Francisco, San Diego, New York and Los Angeles made the top four cities with the highest average age for millennial home buyers, all at 29.5 years and above. These cities also have the highest down payments, and the age of millennial home buyers here reflects the long lead time needed to save for a down payment.
Lowest average age
- Millennials can get on the real estate ladder quickest in Charleston, W.Va., where the average buyer under 35 is 28.2 years old. Borrowers there need to raise an average of $11,942 for their down payment and borrow $102,394.
Highest credit scores
- Millennials in San Francisco had an average credit score of 691 and borrowed an average of $462,724 to fund their dream homes. Likewise, in Honolulu, millennials averaged a 684 credit score to borrow $407,641.
Lowest credit score
- Jackson, Miss. was the most accessible for millennials with lower credit scores at an average of 608. Millennials can often have low scores because of not having a long history of credit, so for prospective buyers it's encouraging that there are cities where lower score borrowers can access the mortgage market.
"The biggest challenges for millennial home buyers are having funds for a down payment and a good credit history," said Tendayi Kapfidze, chief economist at LendingTree. "Potential buyers should educate themselves on how to improve their credit scores and create a savings plan to raise the down payment."
Kapfidze continued, "From a housing market perspective, tight inventory is boosting prices in many markets and millennial home buyers must now contend with rising mortgage interest rates reducing their buying power. As affordability declines, borrowers should consider all the programs available to assist them in becoming homeowners, such as FHA loans."
Rank | City | % of | Avg Age of | Avg Credit | Avg Down | Avg |
1 | Des Moines, Iowa | 42.4% | 28.8 | 645 | $17,793.73 | $141,785.25 |
2 | Pittsburgh | 41.9% | 28.7 | 646 | $16,880.10 | $120,093.12 |
3 | Buffalo, N.Y. | 40.5% | 28.6 | 647 | $16,030.21 | $114,087.09 |
4 | Lansing, Mich. | 40.0% | 28.4 | 624 | $13,285.93 | $103,718.58 |
5 | Fort Wayne, Ind. | 39.2% | 28.3 | 623 | $15,626.07 | $112,680.76 |
6 | Grand Rapids, Mich. | 39.0% | 28.4 | 628 | $16,343.96 | $124,379.48 |
7 | Scranton, Pa. | 38.9% | 29.1 | 628 | $14,374.94 | $107,523.89 |
8 | Syracuse, N.Y. | 38.9% | 28.7 | 640 | $14,009.32 | $110,024.73 |
9 | Youngstown, Ohio | 38.6% | 28.3 | 617 | $10,384.06 | $93,792.22 |
10 | Minneapolis | 38.4% | 28.9 | 660 | $26,560.72 | $184,187.23 |
11 | Albany, N.Y. | 38.3% | 28.8 | 641 | $19,193.30 | $138,964.52 |
12 | Salt Lake City | 37.8% | 28.5 | 663 | $28,540.59 | $216,063.09 |
13 | Charleston, W.Va. | 37.8% | 28.2 | 614 | $11,942.33 | $102,393.99 |
14 | Madison, Wis. | 37.6% | 28.9 | 646 | $23,579.09 | $161,692.34 |
15 | Columbus, Ohio | 37.6% | 28.6 | 633 | $18,444.08 | $136,194.68 |
16 | Rochester, N.Y. | 37.5% | 29.0 | 642 | $16,632.94 | $110,464.02 |
17 | Omaha, Neb. | 37.4% | 28.9 | 649 | $19,386.87 | $143,904.03 |
18 | Lexington, Ky. | 37.4% | 28.4 | 631 | $16,817.11 | $135,230.05 |
19 | St. Louis | 37.3% | 28.5 | 620 | $13,077.69 | $111,945.59 |
20 | Cleveland | 37.3% | 28.6 | 635 | $15,216.80 | $113,337.67 |
21 | Harrisburg, Pa. | 37.0% | 28.6 | 633 | $16,929.10 | $136,488.44 |
22 | Cincinnati | 36.7% | 28.7 | 636 | $17,215.80 | $132,027.03 |
23 | Lafayette, La. | 36.7% | 29.0 | 618 | $14,819.34 | $116,029.03 |
24 | Wichita, Kan. | 36.6% | 28.8 | 629 | $13,007.59 | $113,515.55 |
25 | Kansas City, Mo. | 36.4% | 28.8 | 638 | $17,788.97 | $141,552.79 |
26 | Dayton, Ohio | 36.4% | 28.3 | 622 | $12,382.42 | $108,469.73 |
27 | Indianapolis | 35.9% | 28.7 | 631 | $18,308.47 | $129,493.30 |
28 | Visalia, Calif. | 35.8% | 28.9 | 630 | $22,223.47 | $188,094.73 |
29 | Milwaukee | 35.5% | 28.9 | 640 | $20,744.89 | $146,824.06 |
30 | McAllen, Texas | 35.4% | 28.9 | 628 | $16,110.79 | $122,164.06 |
31 | Springfield, Mass. | 35.4% | 28.9 | 634 | $18,138.17 | $153,841.58 |
32 | Louisville, Ky. | 35.2% | 28.3 | 629 | $16,558.63 | $131,745.95 |
33 | Toledo, Ohio | 35.2% | 28.6 | 626 | $14,653.31 | $103,236.73 |
34 | South Bend, Ind. | 35.2% | 28.7 | 618 | $20,719.80 | $108,732.18 |
35 | Hartford, Conn. | 34.9% | 29.1 | 651 | $21,116.71 | $165,514.06 |
36 | Chicago | 34.7% | 29.2 | 656 | $30,028.04 | $182,822.36 |
37 | Denver | 34.5% | 29.2 | 669 | $41,893.16 | $264,818.96 |
38 | Detroit | 34.5% | 28.7 | 639 | $20,305.19 | $134,187.50 |
39 | Philadelphia | 34.5% | 29.2 | 647 | $25,502.32 | $169,603.21 |
40 | Baton Rouge, La. | 34.4% | 28.9 | 622 | $21,373.95 | $148,897.72 |
41 | Nashville, Tenn. | 34.3% | 28.8 | 645 | $25,281.95 | $183,288.32 |
42 | Birmingham, Ala. | 34.3% | 28.7 | 619 | $16,228.86 | $132,229.09 |
43 | Jackson, Miss. | 33.9% | 29.1 | 608 | $18,286.91 | $132,451.21 |
44 | Greenville, S.C. | 33.9% | 28.4 | 623 | $16,127.42 | $126,502.11 |
45 | Boston | 33.9% | 29.2 | 665 | $38,351.23 | $247,576.30 |
46 | Richmond, Va. | 33.6% | 29.0 | 644 | $23,007.95 | $176,419.26 |
47 | Oklahoma City | 33.5% | 28.6 | 633 | $17,209.35 | $138,535.70 |
48 | New Orleans | 33.3% | 29.3 | 634 | $24,349.32 | $164,404.32 |
49 | Tulsa, Okla. | 33.2% | 28.6 | 627 | $16,493.62 | $127,791.37 |
50 | Washington | 33.1% | 29.3 | 668 | $38,052.17 | $258,911.99 |
51 | Dallas | 32.7% | 29.2 | 641 | $25,572.88 | $182,117.91 |
52 | Colorado Springs, Colo. | 32.6% | 28.7 | 645 | $25,351.25 | $201,010.39 |
53 | Portland, Maine | 32.6% | 28.7 | 646 | $22,183.19 | $165,615.77 |
54 | Greensboro, N.C. | 32.4% | 28.8 | 628 | $17,186.36 | $127,915.55 |
55 | Fayetteville, N.C. | 32.3% | 28.9 | 615 | $13,534.71 | $123,160.41 |
56 | Houston | 32.1% | 29.2 | 644 | $27,804.07 | $181,083.60 |
57 | Springfield, Mo. | 32.1% | 28.3 | 626 | $13,284.32 | $119,473.33 |
58 | Charlotte, N.C. | 32.1% | 29.1 | 644 | $23,907.17 | $168,701.46 |
59 | Knoxville, Tenn. | 32.0% | 28.3 | 626 | $16,455.36 | $126,937.99 |
60 | Little Rock, Ark. | 31.9% | 28.7 | 621 | $15,786.96 | $123,538.99 |
61 | New York | 31.9% | 29.6 | 677 | $53,787.82 | $273,894.48 |
62 | Chattanooga, Tenn. | 31.7% | 28.4 | 626 | $14,241.67 | $124,853.12 |
63 | Portland, Ore. | 31.6% | 29.0 | 655 | $32,047.37 | $229,908.51 |
64 | Fresno, Calif. | 31.4% | 29.1 | 643 | $25,742.96 | $204,774.53 |
65 | Austin, Texas | 31.4% | 29.4 | 663 | $33,777.22 | $216,815.86 |
66 | Bakersfield, Calif. | 31.2% | 29.0 | 633 | $23,373.57 | $190,823.16 |
67 | Huntsville, Ala. | 30.9% | 28.5 | 628 | $15,719.44 | $131,351.49 |
68 | Raleigh, N.C. | 30.9% | 29.3 | 658 | $26,454.24 | $180,963.67 |
69 | Columbia, S.C. | 30.9% | 29.0 | 619 | $16,075.42 | $124,914.19 |
70 | Augusta, Ga | 30.8% | 29.0 | 620 | $15,363.71 | $130,371.16 |
71 | Atlanta | 30.8% | 29.1 | 635 | $22,760.54 | $166,181.94 |
72 | Modesto, Calif. | 30.5% | 29.0 | 639 | $29,653.92 | $215,497.31 |
73 | Savannah, Ga. | 30.4% | 28.8 | 626 | $18,376.29 | $147,348.88 |
74 | Seattle | 30.3% | 29.3 | 668 | $45,882.32 | $284,327.82 |
75 | Memphis, Tenn. | 30.2% | 29.0 | 622 | $21,052.41 | $140,400.01 |
76 | Charleston, S.C. | 30.2% | 29.1 | 636 | $24,014.39 | $174,834.19 |
77 | San Antonio | 30.0% | 29.1 | 630 | $20,275.56 | $162,308.66 |
78 | Virginia Beach, Va. | 29.8% | 29.1 | 630 | $19,269.35 | $175,349.20 |
79 | Jacksonville, Fla. | 29.1% | 29.1 | 630 | $20,925.15 | $154,757.97 |
80 | Boise City, Idaho | 28.7% | 28.5 | 639 | $21,131.74 | $157,950.97 |
81 | Sacramento, Calif. | 28.6% | 29.4 | 657 | $35,569.75 | $249,060.49 |
82 | Phoenix | 28.4% | 28.8 | 645 | $25,829.34 | $194,316.32 |
83 | El Paso, Texas | 28.1% | 29.4 | 633 | $15,891.58 | $142,054.38 |
84 | San Francisco | 28.1% | 29.9 | 691 | $96,045.17 | $462,724.33 |
85 | Mobile, Ala. | 27.3% | 28.6 | 618 | $17,354.12 | $130,894.95 |
86 | Los Angeles | 27.3% | 29.5 | 664 | $56,305.01 | $339,475.05 |
87 | Spokane, Wash. | 27.1% | 28.6 | 637 | $20,713.56 | $168,012.16 |
88 | Orlando, Fla. | 26.9% | 29.0 | 639 | $23,062.92 | $171,350.20 |
89 | Miami | 25.9% | 29.4 | 652 | $32,747.98 | $208,555.15 |
90 | San Diego | 25.6% | 29.6 | 677 | $58,296.55 | $376,406.45 |
91 | Albuquerque, N.M. | 25.4% | 29.1 | 638 | $21,168.90 | $164,236.37 |
92 | Tampa, Fla. | 25.2% | 29.1 | 641 | $23,156.26 | $166,716.42 |
93 | Reno, Nev. | 24.9% | 28.9 | 649 | $28,798.00 | $213,222.64 |
94 | Tucson, Ariz. | 24.8% | 28.9 | 637 | $18,669.74 | $157,116.08 |
95 | Lakeland, Fla. | 24.1% | 29.0 | 625 | $18,232.45 | $145,477.68 |
96 | Las Vegas | 22.9% | 29.2 | 644 | $28,170.57 | $202,295.60 |
97 | Palm Bay, Fla. | 22.3% | 28.7 | 643 | $20,985.97 | $157,738.78 |
98 | Honolulu | 21.8% | 29.4 | 684 | $55,104.63 | $407,641.26 |
99 | Fort Myers, Fla. | 19.8% | 29.0 | 640 | $24,074.23 | $179,450.90 |
100 | Sarasota, Fla. | 17.9% | 28.8 | 639 | $24,756.05 | $173,760.11 |
