New York ranks in the top 10 most popular metros for Millennial homebuyers

Millennials – born between 1981 and 1996 – are in their prime homebuying years. Although their plans to purchase a home have been interrupted by the COVID-19 pandemic and repeated financial setbacks, Millennials still make up the largest share of homebuyers in the United States. This age group represents 43 percent of all buyers in the country, according to the National Association of Realtors (NAR). 

The mortgage marketplace LendingTree released a new study that looked at mortgage offers across the country’s 50 largest metros from January 1 through December 1, 2022, to find out where Millennials want to buy a home. The most popular destination among Millennial homebuyers was San Jose, California. In this metro, 63.57 percent of mortgages went to people from this generation. 

Denver ranked No. 2 on LendingTree's list of the most sought-after places for Millennials looking to purchase a house. This age group received 61.35 percent of all mortgage offers. Boston climbed to third place, with nearly 61 percent of home loans going to Millennial buyers. Although homes listed for sale in these top-3 metros have higher than average asking prices, these destinations are in-demand among Millennials thanks to their location.

New York became the seventh most popular destination for Millennials. In this metropolitan area, the share of mortgages offered to homebuyers ages 27 to 42 reached 57.06 percent. Millennials also make up the largest share of potential homebuyers in Seattle, Austin, San Francisco, San Diego, Los Angeles, and Washington, D.C. The least popular destinations for Millennial homebuyers are Las Vegas, Birmingham, AL, and Phoenix. 

For Millennials and Gen Z, the journey to homeownership is full of challenges and changes. However, despite the difficulties, most people from these generations still want to own a home someday. On average, over 52 percent of the purchase requests come from Millennials, followed by Gen Xers. In addition, Millennials make up the majority of buyers in 37 of the nation’s 50 largest metros.  

“Put simply, though Millennials are certainly not as financially well-off as older generations, they’re at a place where buying often makes the most sense,” the report reads. “And as Millennials age, younger generations will likely supplant them as the largest share of homebuyers on the market — even if those younger generations might also have to deal with increased financial hardships related to buying.”

Resources:

“Most Popular Metros for Millennial Homebuyers, From the West Coast to the East Coast,” by Jacob Channel (LendingTree, 2023)

“This California city is the most popular with Millennial homebuyers in the U.S.” by Celia Fernandez (CNBC, 2023)