Young Buyers Are Targeting These Metros

December 8, 2015

The millennial generation is 43.5 million strong, and they are expected to make a big splash in the housing market. The older group of millennials – those in the 25 to 34 age group, comprise 13.6 percent of the U.S. population alone and are 30 percent of the current population of existing home buyers.

“In 2016, millennials have the power to remake the real estate landscape wherever they choose to settle,” according to a recent article at realtor.com®.

Realtor.com®’s research team recently highlighted the top 10 markets that will likely see a surge in millennial home buyers in 2016. The rankings factor in 2016 sales and price projections, the representation of millennial users among viewers of realtor.com®’s “for sale” listing pages, and the share of households aged 25 to 34 compared to all heads of households. Here are the metros that emerged to the top of the list: 

1. Atlanta

Median list price: $234,000

Population share of older millennials (24 to 35 years old): 13.6%

2. Pittsburgh

Median list price: $149,000

Population share of older millennials: 12.3%

3. Memphis, Tenn.

Median list price: $164,000

Population share of older millennials: 13.5%

4. Boston

Median list price: $408,000

Population share of older millennials: 13.8%

5. Austin, Texas

Median list price: $367,000

Population share of older millennials: 16.5%

6. San Diego

Median list price: $585,000

Population share of older millennials: 15.5%

7. Seattle

Median list price: $398,000

Population share of older millennials: 14.9%

8. Houston

Median list price: $312,000

Population share of older millennials: 14.4%

9. Denver

Median list price: $449,000

Population share of older millennials: 14.9%

10. Charlotte, N.C.

Median list price: $230,000

Population share of older millennials: 13.1%

Meanwhile, realtor.com® also found a few markets that likely will see the fewest number of millennials buying homes in 2016. In the following five places, the number of mortgages purchased in 2015 by 25 to 34 year olds was below average and few members of that age group were looking at listings on realtor.com®.

1. Jacksonville, Fla.

Median list price: $228,000

Population share of older millennials: 13.5%

2. Phoenix

Median list price: $290,000

Population share of older millennials: 13.8%

3. Port St. Lucie, Fla.

Median list price: $248,000

Population share of older millennials: 10.2%

4. Spokane, Wash.

Median list price: $214,000

Population share of older millennials: 13.5%

5. Stockton, Calif.

Median list price: $308,000

Population share of older millennials: 13.3%

Source: “Where’s Hot – Where’s Not – for Home-Buying Millennials in 2016,” realtor.com® (Dec. 7, 2015)