“People who believe that millennials are disinterested in homeownership aregrosslymistaken,” said our chief economist,Jonathan Smoke. “This generation hit the job market during one of the largest recessions of all time, and they’ve had to work hard to establish credit and save for a down payment. With the older segment just beginning to enjoy living the life that drives homeownership—including marriage and children—now is the most appropriate time for them to consider homeownership. And that’s exactly what the latest numbers are showing.”
Almost 65% of millennials aged 21 to 34 spent time on real estate websites and apps in August, according to Smoke’s analysis of data from comScore and current population estimates. In addition, older millennials—25- to 34-year-olds—are 70% more likely than the average adult to be currently looking for a home to buy on realtor.com.
But since millennials are just starting out in their careers, financing is a key step. As Smoke points out, 97% of them need a loan in order to buy a home.
Here’s the financial profile of the average millennial who got a mortgage in the first half of 2015:
FICO score:714 Down payment:7.1% Mortgage rate:4.03% Debt-to-income ratio:36%
So we decided to identify the top 10 areas where millennials are best represented among mortgage borrowers. In these towns, millennials account for 44% to 59% of all purchased mortgages.
“These markets underscore first-time home buyers’/millennial interest in growing, yet affordable, regions,” Smoke said.
We’ve rounded up some awfully appealing homes in each of these promising markets, highlighting what they have to offer young buyers. While the median U.S. home price was $232,000 as of August, most of these homes are much, much less.
Kick off the holiday season and celebrate the Zilker Tree 50th Ye
"As a first time home buyer (going into the whole process essentially blind), I was hoping I would find a realtor who I could fully trust to help me along the way. From the get go Alfredo was super personable and extremely communicative. His experience and knowledge of the system and the process put me at ease. I always felt like he had my back and went above & beyond when there was a property I wanted to put an offer on. For a process that can be so intense, the whole experience was relatively quick and seamless. I couldn't be happier with the way everything turned out and the wonderful effort Alfredo put in. And of course, I love my home!!"