Top 10 Cities for Millennial Homebuyers

A new study by LendingTree, an online loan marketplace, finds that millennials are at the forefront of a growing nationwide trend of young buyers returning to the housing market.

LendingTree analyzed mortgage requests and offers for borrowers 35 and younger between August and February, along with requests from the total population of mortgage seekers based on the location of the property to be mortgaged. The report comes on the heels of a prediction in December that millennials would drive up homeownership in 2017.

LendingTree found that on average, 36.1% of all mortgage requests through its site in the six months to February 1 came from consumers 35 and younger, up from 34.2% during the same period last year.

The average loan amount requested from this age group was $175,180, compared with an average of $191,157 for those over 35. 

“Thanks to a stronger jobs market and overall economy, the 35-and-under crowd is growing up,” LendingTree’s chief executive Doug Lebda said in a statement.  

Millennials have been slow to enter the real estate market, Lebda said, but the appeal of homeownership remains strong, and younger buyers are becoming more active.

“Rising home prices and high student loan debt are still affecting the purchase power of millennials, but as more student debt is repaid and the jobs market improves, we’re likely going to see more young buyers in this spring’s home buying season than in previous years,” he said.

Following are the 10 cities in which millennial borrowers submitted the highest percentage of total purchase mortgage requests to LendingTree, along with their mortgage amounts and payments:

10. Omaha

Millennial percentage of total requests: 44.3%

Millennial average mortgage amount: $192,215

Millennial average monthly payment: $957

Millennial average down payment: $29,637

Total average mortgage amount: $211,689

Total average monthly payment: $1,045

Total average down payment: $42,511

9. San Francisco

Millennial percentage of total requests: 44.3%

Millennial average mortgage amount: $528,761

Millennial average monthly payment: $2,614

Millennial average down payment: $160,401

Total average mortgage amount: $497,803

Total average monthly payment: $2,453

Total average down payment: $144,980

8. Chicago

Millennial percentage of total requests: 44.4%

Millennial average mortgage amount: $273,376

Millennial average monthly payment: $1,352

Millennial average down payment: $59,480

Total average mortgage amount: $263,724

Total average monthly payment: $1,307

Total average down payment: $61,907

7. Cincinnati

Millennial percentage of total requests: 44.6%

Millennial average mortgage amount: $173,905

Millennial average monthly payment: $882

Millennial average down payment: $25,576

Total average mortgage amount: $190,128

Total average monthly payment: $954

Total average down payment: $37,214

6. Minneapolis

Millennial percentage of total requests: 44.7%

Millennial average mortgage amount: $226,158

Millennial average monthly payment: $1,109

Millennial average down payment: $40,573