Dive Brief:
- Realtor.com has released its 2016 predictions for millennials aged 25-34 and the Top 10 places they are likely to buy homes next year, as well as the five markets the demographic will leave in the rear-view mirror.
- Realtor.com gave the top spot to Atlanta, citing high median starting salaries and the cheap cost of living, including an affordable housing market.
- Coming in second is Pittsburgh, the "new Portland" to some, which is experiencing an influx of younger residents. Millennials are attracted to this market for its low housing costs, a thriving nightlife, reliable public transportation and a revamped waterfront area. Rounding out the top three is Memphis, TN, home to Elvis and Graceland. The southern blues mecca’s affordable housing and low cost of living has given this city a share of millennials 7% higher than the national average.
Dive Insight:
According to Realtor.com, 43.5 million older millennials make up 13.6% of the U.S. population and 30% of existing homebuyers. The real estate website said millennials are being priced out of expensive cities like New York and Los Angeles and are instead choosing cities with booming job markets and affordable housing.
Millennials still have to overcome the prevailing market conditions — rising rents and home prices — that continue to make saving for a down payment difficult. In fact, according to a recent Trulia survey, this is the number one barrier to homeownership.
Recent research also indicates that millennials are burdened by student debt and are opting to live with their parents for a longer period of time rather than moving out on their own.
Here is Realtor.com’s full Top 10 list of where millennials are most likely to buy in 2016, with median home listing price and population share of older millennials:
1. Atlanta, GA
- Median list price: $234,000
- Population share of older millennials (24 to 35 years old): 13.6%
2. Pittsburgh, PA
- Median list price: $149,000
- Population share of older millennials: 12.3%
3. Memphis, TN
- Median list price: $164,000
- Population share of older millennials: 13.5%
4. Boston, MA
- Median list price: $408,000
- Population share of older millennials: 13.8%
5. Austin, TX
- Median list price: $367,000
- Population share of older millennials: 16.5%
6. San Diego, CA
- Median list price: $585,000
- Population share of older millennials: 15.5%
7. Seattle, WA
- Median list price: $398,000
- Population share of older millennials: 14.9%
8. Houston, TX
- Median list price: $312,000
- Population share of older millennials: 14.4%
9. Denver, CO
- Median list price: $449,000
- Population share of older millennials: 14.9%
10. Charlotte, NC
- Median list price: $230,000
- Population share of older millennials: 13.1%
Realtor.com also listed the five housing markets where millennials will not be buying homes, citing lack of growth in the area as the primary reason:
1. Jacksonville, FL
- Median list price: $228,000
- Population share of older millennials: 13.5%
2. Phoenix, AZ
- Median list price: $290,000
- Population share of older millennials: 13.8%
3. Port St. Lucie, FL
- Median list price: $248,000
- Population share of older millennials: 10.2%
4. Spokane, WA
- Median list price: $214,000
- Population share of older millennials: 13.5%
5. Stockton, CA
- Median list price: $308,000
- Population share of older millennials: 13.3%
