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
Total average mortgage amount: $230,035
Total average monthly payment: $1,139
Total average down payment: $47,100
5. St. Louis
Millennial percentage of total requests: 44.8%
Millennial average mortgage amount: $189,499
Millennial average monthly payment: $951
Millennial average down payment: $32,242
Total average mortgage amount: $215,774
Total average monthly payment: $1,077
Total average down payment: $49,658
4. Boston
Millennial percentage of total requests: 45.8%
Millennial average mortgage amount: $410,504
Millennial average monthly payment: $1,989
Millennial average down payment: $88,877
Total average mortgage amount: $399,062
Total average monthly payment: $1,940
Total average down payment: $100,113
3. Des Moines
Millennial percentage of total requests: 46.4%
Millennial average mortgage amount: $173,439
Millennial average monthly payment: $868
Millennial average down payment: $25,879
Total average mortgage amount: $186,074
Total average monthly payment: $929
Total average down payment: $42,554
2. Washington, D.C.
Millennial percentage of total requests: 46.8%
Millennial average mortgage amount: $381,110
Millennial average monthly payment: $1,856
Millennial average down payment: $83,461
Total average mortgage amount: $394,769
Total average monthly payment: $1,919
Total average down payment: $97,202
1. Pittsburgh
Millennial percentage of total requests: 48.4%
Millennial average mortgage amount: $201,921
Millennial average monthly payment: $992
Millennial average down payment: $33,964
Total average mortgage amount: $213,237
Total average monthly payment: $1,044
Total average down payment: $47,766
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