In the next 10 years, Millennials are expected to purchase an estimated 10 million homes, ushering more than 20 million first-time homebuyers into the housing market.
Furthermore, Ernst & Young data indicates that within the last two years, the homeownership rate for Millennials between the ages of 28 and 31 increased from 27% to 47%.
Notably, a new report from LendingTree reveals that between Jan. 1, 2018 and Nov. 25, 2018, about 25% of all mortgage purchase requests made on its website came from Millennials.
Although the rate of Millennial homeownership is rising, some markets are especially hot for young homebuyers, according to LendingTree’s analysis.
“Salt Lake City, Minneapolis and Pittsburgh are the metros where millennials are making up the largest percentage of purchase requests,” LendingTree writes. “In Salt Lake City, a majority of the total purchase requests in the area, 51%, come from Millennials. In Minneapolis and Pittsburgh, that number is 48%.”
While some U.S. markets are seeing an increase in Millennial homeownership, cities like Tampa, Las Vegas and Miami lag behind national percentages.
“In Tampa, Fla., Las Vegas and Miami, Millennials are making the least purchase requests,” the report states. “Only 30% of purchase requests came from people under 35 in Tampa. That number was only slightly higher in Las Vegas and Miami, where 31% and 32% of purchase requests came from those under 35.”
Despite these lower percentages, a new study by Bank of America shows that 72% of Millennials now consider homeownership a top priority.
“This fall’s report finds that Millennials are redefining life’s priorities by placing homeownership above nearly all other key milestones, including marriage,” Bank of America Consumer Lending Managing Director Steve Boland said. “Millennials equate homeownership with personal and financial success, and it’s encouraging to see this generation aspire to homeownership.
NOTE: LendingTree’s report analyzed new purchase mortgage requests from Jan. 1, 2018 and Nov. 25, 2018. The company generated city rankings from the percentage of total purchase mortgage requests received from millennials, defining them as those aged under 35.