More millennials are bypassing high-priced coastal markets in favor of the Rust Belt and Midwest, shows a new analysis by LendingTree, an online loan marketplace.
The report shows that millennials in Pittsburgh, Des Moines, Iowa, and Buffalo, N.Y., are pursuing homeownership more than their counterparts in any of the nation’s 100 largest cities. LendingTree analyzed mortgage requests and offers of borrowers ages 35 years old and under between Feb. 1, 2017, and Feb. 1, 2018.
The share of purchase mortgage requests coming from millennials in Des Moines jumped 42 percent in that time. The average loan amount among millennials was $141,785. Pittsburgh saw millennial purchase mortgage requests increase by 41.9 percent, with the average loan amount at $120,093. Buffalo, N.Y., posted a 40.5 percent increase in millennial mortgage requests and an average loan amount of $114,087.
LendingTree’s study found the 10 most popular cities for millennial home buyers are:
- Des Moines, Iowa
- Pittsburgh
- Buffalo, N.Y.
- Lansing, Mich.
- Fort Wayne, Ind.
- Grand Rapids, Mich.
- Scranton, Pa.
- Syracuse, N.Y.
- Youngstown, Ohio
- Minneapolis
On the other hand, millennials had the lowest requests for mortgage applications in several markets within Florida—such as Sarasota, Fort Myers, Palm Bay, Lakeland, and Tampa—as well as in Honolulu and Las Vegas, the study shows. The Florida communities tend to be popular with retirees, and Honolulu is a high-cost metro, “which makes it challenging for millennial buyers who are just starting out on building financial and real assets,” LendingTree notes in its findings.
“The biggest challenges for millennial home buyers are having funds for a down payment and a good credit history,” says Tendayi Kapfidze, LendingTree’s chief economist. “Potential buyers should educate themselves on how to improve their credit scores and create a savings plan to raise the down payment.”
View the rankings of all 100 markets tracked
at LendingTree.
Source: LendingTree
