The 5 most popular cities for millennial homebuyers — so you can avoid them
There’s one city to avoid if you really don’t fancy having a millennial as your next-door neighbor, according to a new homebuyer report.
Minneapolis, Minnesota, tops the list of most desirable locations for Americans born between 1981 and 1996, according to analysis by real estate website Sundae.
The cold winters may not be for everyone, but the Midwestern metropolis is popular among those between 24 and 39 because of its strong economy, affordable housing and low unemployment rate.
“As a hub for entrepreneurs, the city attracts huge numbers of young professionals looking to build the next great startup,” according to Sundae. “Career opportunities are also on the rise in the thriving biomedical, professional services and technology sectors.”
The average age of a millennial home buyer in Minneapolis is 30.4 years old and the number of mortgage requests coming from this generation is a whopping 56.2%. The per capita personal income is $62,889, while the 2019 median home sale price in the city is $284,000 — compared to an eye-watering $1,075,000 in Manhattan and $790,000 in Brooklyn.
It could be the draw of the five national sports teams based in Minneapolis or the lure of the outdoor lifestyle fostered by its lakes and parks, but, according to Smart Asset, almost 22,000 millennial-aged people moved there in 2018.
Meanwhile, Buffalo, New York, scores second on Sundae’s list of millennials’ ideal urban municipalities.
Yes, it’s a six-and-a-half-hour drive from Manhattan, but the city famed for its spicy chicken wings is a popular choice for younger folk largely because of its low median home sales price of just $150,000 in 2019. The per capita personal income is $50,414.
Other incentives for the millennial buyer — whose average age in Buffalo is 31.1 years old — include jobs in financial services, education and health care, where the redeveloped waterfront offers bars, restaurants, water activities and green space.
The third most popular city on the roster is San Jose, California, where, thanks to the nearby presence of tech companies like Google and Apple, the per capita personal income is $106,213.
Mortgage requests by millennials are 55.8% of the total number of applications in San Jose and the average age of the younger buyer is 31.7 years.
“Although palatial homes in the area drive up the median house price [$1,130,000 in 2019], plenty of options remain available that align with the lofty salaries of blossoming Silicon Valley tech professionals,” says Sundae.
The weather helps: average high in the winter is in the low 60s, while the summer months rarely see temperatures above the mid-80s.
Taking fourth and fifth place in Sundae’s list of millennial-favored cities are Denver, Colorado, and Salt Lake City, Utah, respectively.
Denver boasts a 2019 median home sales price of $439,000, with its average millennial buyer being 30.8 years old. Salt Lake City has a 2019 median home sales price of $51,736 and an average millennial buyer aged 30.5 years old.
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