Millennials now make up the largest group of homebuyers in the U.S., and are choosing to lay down roots in big cities and up-and-coming metropolises versus suburbs and small towns.
In a January 6 report, online marketplace LendingTree ranked the most popular metro areas for millennials, and perhaps surprisingly, Dallas landed near the middle of the pack of 50 cities, at No. 28.
Millennials account for 53.7 percent of homebuyers in Dallas, and have an average age of 31 years, 6 months. Millennial buyers bring an average downpayment of $34,815 and borrow $245,355 to finance their investment, says LendingTree.
To determine the top metros, LendingTree analyzed mortgage purchase requests made on their own platform across the nation’s 50 largest metros, beginning January 1 through December 15, 2020.
Though millennials are less wealthy than their Baby Boomer and Gen X counterparts, LendingTree points to the current record-low mortgage rates spurred by the pandemic as a reason for the new swath looking to buy a home.
"What LendingTree [also] found was that millennials (defined as anyone born between 1981 and 1996) make up a majority of potential homebuyers in most of the country’s largest metros," the report says. "Location is typically a primary factor to consider when buying a home, but the pandemic has affected many aspects of the U.S. economy including various industries and local job markets."
Only one Texas city landed in the top 10 — Austin.
Millennials make up 57.34 percent of homebuyers in the Capital City, earning it the No. 8 spot in popularity. The average age for a potential buyer in the Austin metro was 31 years, 4 months, with an average credit score of 687.
Despite a crippled hospitality industry, the Central Texas job market is still considered strong, and the city drew even more attention in 2020 as a cavalry of California-based celebrities decamped to Austin.
When it comes to purchase power, Austin homebuyers bring an average of $47,940 as downpayment, and borrow an average of $288,461. In December 2020, median home prices in the Austin-Round Rock area hit $365,000. Inside the city limits, that number soared to $433,493.
Elsewhere in Texas, Houston comes in just ahead of Dallas at No. 26. In that city, millennials make up 53.77 percent of people looking to purchase a home, and boast an average age of 31 years, 7 months and a credit score of 660. When it comes to financing, young homebuyers bring an average downpayment of $34,361 and borrow $231,300.
San Antonio is the fourth and final Texas city in LendingTree's report. At No. 34, millennials make up 51.46 percent of homebuyers in the Alamo City, and have an average age of 31 years, 7 months. As for financing, buyers typically bring $25,867 and finance an average of $203,710.
Rounding out to the top 10 largest metros ranked by millennial popularity: San Jose, California (No. 1); Boston (No. 2); Denver (No. 3); Minneapolis (No. 4); Buffalo, New York (No. 5); San Francisco (No. 6); Salt Lake City (No. 7); Pittsburgh, Pennsylvania (No. 9); and New York City (No. 10).
Landing lowest on the list are Las Vegas; Tampa, Florida; and Phoenix.