While first-time millennial home buyers’ presence in the housing market has been subdued in recent years, some metro areas are poised to soon see an increase in home buying from the millennial generation, according to new research from the National Association of REALTORS®.
“Limited job prospects, student debt, and flat wage growth have combined with tight credit conditions and low inventory to price millennials out of some of the top cities such as New York and San Francisco,” says Lawrence Yun, NAR’s chief economist. “However, NAR research finds that there are other metro areas millennial home buyers are moving to where job growth is strong and home ownership is more attainable. These markets are well-positioned to soon experience a rise in first-time buyers as the economy improves.”
To identify those soon-to-be booming millennial markets, NAR factored in current housing conditions and housing affordability, job creation, and population trends in 100 metro area across the country that have a large millennial presence to determine the best markets for aspiring millennial home buyers. Seven of the 10 metro areas were in the Midwest and West. The top markets identified (listed in alphabetical order) are:
- Austin, Texas
- Des Moines, Iowa
- Grand Rapids, Mich.
- New Orleans
- Ogden, Utah
- Salt Lake City
NAR also identified the following markets with high potential for attracting millennial home buyers:
- Madison, Wis.
- Nashville, Tenn.
- Omaha, Neb.
- Raleigh, N.C.
- Washington, D.C.
“Millennials will eventually settle down, trade their roommates for spouses and want to raise a family,” says Steve Brown, NAR’s president. “As long as median income continues to support purchasing power in most areas, the demand and opportunity will be there for millennials to purchase their first home with guidance and insights from a REALTOR®.”
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