Homebuyer demand was off the charts in 2020, but which markets saw the favor of the biggest group of homebuyers, millennials? Those born between 1981 and 1996 made up the majority of potential homebuyers in most of the country’s largest metro areas, according to a new report from mortgage site LendingTree.
The report analyzed mortgage requests and offers for borrowers across the 50 largest U.S. metro areas from Jan. 1, 2020 to Dec. 15, 2020 and honed in on borrowers aged 24 to 39. Then the report ranked the metros by the percentage of total purchase mortgage requests received by LendingTree from borrowers in that age group.
LendingTree found that millennials made up at least 50 percent of purchase mortgage requests in 43 out of the 50 largest metros. San Jose, California; Boston and Denver were the metros where millennials make up the largest share of purchase requests: 61.79 percent, 59.09 percent and 59.07 percent, respectively.
The report offered the following stats specifically for millennial buyers in each of these three metros:
No. 1: San Jose, Calif.
Share of mortgage requests: 61.79%
Average age: 32.12
Average credit score: 730
Average down payment: $158,040
Average requested loan amount: $704,318
No. 2: Boston
Share of mortgage requests: 59.09%
Average age: 31.48
Average credit score: 705
Average down payment: $78,062
Average requested loan amount: $416,267
No. 3: Denver
Share of mortgage requests: 59.07%
Average age: 31.25
Average credit score: 691
Average down payment: $56,937
Average requested loan amount: $354,433
LendingTree found that the oldest millennial homebuyers were in San Francisco, San Jose and New York City, with an average age of 32.1 years old, which the site said was about half a year older than the average 31.57 across all 50 of the largest metros in the country.
“Since these metros are so expensive, millennials likely need to spend more time saving before they’re ready to buy a house,” the report said.
The youngest millennial buyers were in Salt Lake City; Buffalo, New York; and Detroit, with an average age of 31.03 years old.
Millennial buyers in San Jose, San Francisco and New York City had the highest credit scores, with an average of 721. By contrast, the average millennial credit score for the 50 largest metros was 669.
Millennial buyers in Memphis, Tennessee; Virginia Beach, Virginia; and Birmingham, Alabama, had the lowest average credit scores: approximately 638, 639 and 640, respectively.
The least popular metros among millennials were Las Vegas; Tampa, Florida; and Phoenix.
“Millennials made just 42.58% of the purchase requests in Las Vegas, 44.54% in Tampa and 46.33% of the purchase requests in Phoenix, indicating these metros may not be that popular with millennials,” the report said.
This is despite the comparatively lower cost of homes in these areas. The report offered the following stats specifically for millennial buyers in each of these three metros:
No. 1: Las Vegas
Share of mortgage requests: 42.58%
Average age: 31.82
Average credit score: 659
Average down payment: $37,289
Average requested loan amount: $273,496
No. 2: Tampa, Fla.
Share of mortgage requests: 44.54%
Average age: 31.66
Average credit score: 654
Average down payment: $30,298
Average requested loan amount: $218,632
No. 3: Phoenix
Share of mortgage requests: 46.33%
Average age: 31.40
Average credit score: 659
Average down payment: $35,603
Average requested loan amount: $258,161
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