CHARLOTTE, N.C., March 20, 2018 /PRNewswire/ -- LendingTreeĀ®,
the nation's leading online loan marketplace, has released the
findings of its study on the most popular cities for millennial
homebuyers. The study found millennials in Des Moines, Pittsburgh and Buffalo are pursuing homeownership more than
their counterparts in any of the nation's 100 largest cities.
Young homebuyers are at the forefront of an increasing number of
buyers returning to the housing market. The largest single-age
population in the U.S. is 27-year-olds at almost 4.8 million,
suggesting that millennials' influence on the housing market has
years to run before it peaks.
LendingTree analyzed mortgage requests and offers for borrowers
ages 35 years and under between Feb. 1,
2017 and Feb. 1, 2018, along
with requests from the total population of mortgage-seekers based
on the location of the property to be mortgaged. The city rankings
are generated from the percentage of total purchase mortgage
requests received by LendingTree from borrowers in the millennial
generation.
Most popular cities among millennial homebuyers
1. Des Moines, Iowa
- Share of purchase mortgage requests coming from millennials:
42.4%
- Average loan amount: $141,785
2. Pittsburgh, Pa.
- Share of purchase mortgage requests coming from millennials:
41.9%
- Average loan amount: $120,093
3. Buffalo, N.Y.
- Share of purchase mortgage requests coming from millennials:
40.5%
- Average loan amount: $114,087
Key findings
Millennial homebuyers make up one-third of mortgage
requests. 32.5 percent of all mortgage requests through
LendingTree between Feb. 1, 2017 and
Feb. 1, 2018 came from consumers 35
years and younger. The average loan amount requested from this age
group is $166,863.
Where millennials aren't vying for homeownership. At the
other end of the scale, Sarasota,
Fla., Fort Myers Fla. and
Honolulu had lowest shares of
millennial buyers at 17.9 percent, 19.8 percent and 21.8 percent
respectively. The Florida
communities are popular with retirees while Honolulu is a high-cost metro, which makes it
challenging for millennial buyers who are just starting out on
building financial and real assets.
Other findings
The study also looked at other borrower characteristics and
found some interesting results on the average age of the borrowers
and their credit scores.
Highest average age
San
Francisco, San Diego,
New York and Los Angeles made the top four cities with the
highest average age for millennial homebuyers, all at 29.5 years
and above. These cities also have the highest down payments, and
the age of millennial homebuyers here reflects the long lead time
needed to save for a down payment.
Lowest average age
Millennials can get on the real
estate ladder quickest in Charleston,
W.Va., where the average buyer under 35 is 28.2 years old.
Borrowers there need to raise an average of $11,942 for their down payment and borrow
$102,394.
Highest credit scores
Millennials in San Francisco had an average credit score of
691 and borrowed an average of $462,724 to fund their dream homes. Likewise, in
Honolulu, millennials averaged a
684 credit score to borrow $407,641.
Lowest credit score
Jackson,
Miss. was the most accessible for millennials with lower
credit scores at an average of 608. Millennials can often have low
scores because of not having a long history of credit, so for
prospective buyers it's encouraging that there are cities where
lower score borrowers can access the mortgage market.
"The biggest challenges for millennial homebuyers are having
funds for a down payment and a good credit history," said Tendayi
Kapfidze, Chief Economist at LendingTree. "Potential buyers should
educate themselves on how to improve their credit scores and create
a savings plan to raise the down payment."
Kapfidze continued, "From a housing market perspective, tight
inventory is boosting prices in many markets and millennial
homebuyers must now contend with rising mortgage interest rates
reducing their buying power. As affordability declines, borrowers
should consider all the programs available to assist them in
becoming homeowners, such as FHA loans."
For more information on the study, visit
https://www.lendingtree.com/home/most-popular-cities-millennial-homebuyers/.
Rank
|
City
|
% of
Purchase
Requests
(<35)
|
Avg Age of
Buyers
(<35)
|
Avg Credit
Score Value
(<35)
|
Avg Down
Payment
(<35)
|
Avg
Requested
Loan
Amount
(<35)
|
1
|
Des Moines,
Iowa
|
42.4%
|
28.8
|
645
|
$17,793.73
|
$141,785.25
|
2
|
Pittsburgh
|
41.9%
|
28.7
|
646
|
$16,880.10
|
$120,093.12
|
3
|
Buffalo,
N.Y.
|
40.5%
|
28.6
|
647
|
$16,030.21
|
$114,087.09
|
4
|
Lansing,
Mich.
|
40.0%
|
28.4
|
624
|
$13,285.93
|
$103,718.58
|
5
|
Fort Wayne,
Ind.
|
39.2%
|
28.3
|
623
|
$15,626.07
|
$112,680.76
|
6
|
Grand Rapids,
Mich.
|
39.0%
|
28.4
|
628
|
$16,343.96
|
$124,379.48
|
7
|
Scranton,
Pa.
|
38.9%
|
29.1
|
628
|
$14,374.94
|
$107,523.89
|
8
|
Syracuse,
N.Y.
|
38.9%
|
28.7
|
640
|
$14,009.32
|
$110,024.73
|
9
|
Youngstown,
Ohio
|
38.6%
|
28.3
|
617
|
$10,384.06
|
$93,792.22
|
10
|
Minneapolis
|
38.4%
|
28.9
|
660
|
$26,560.72
|
$184,187.23
|
11
|
Albany,
N.Y.
|
38.3%
|
28.8
|
641
|
$19,193.30
|
$138,964.52
|
12
|
Salt Lake
City
|
37.8%
|
28.5
|
663
|
$28,540.59
|
$216,063.09
|
13
|
Charleston,
W.Va.
|
37.8%
|
28.2
|
614
|
$11,942.33
|
$102,393.99
|
14
|
Madison,
Wis.
|
37.6%
|
28.9
|
646
|
$23,579.09
|
$161,692.34
|
15
|
Columbus,
Ohio
|
37.6%
|
28.6
|
633
|
$18,444.08
|
$136,194.68
|
16
|
Rochester,
N.Y.
|
37.5%
|
29.0
|
642
|
$16,632.94
|
$110,464.02
|
17
|
Omaha,
Neb.
|
37.4%
|
28.9
|
649
|
$19,386.87
|
$143,904.03
|
18
|
Lexington,
Ky.
|
37.4%
|
28.4
|
631
|
$16,817.11
|
$135,230.05
|
19
|
St. Louis
|
37.3%
|
28.5
|
620
|
$13,077.69
|
$111,945.59
|
20
|
Cleveland
|
37.3%
|
28.6
|
635
|
$15,216.80
|
$113,337.67
|
21
|
Harrisburg,
Pa.
|
37.0%
|
28.6
|
633
|
$16,929.10
|
$136,488.44
|
22
|
Cincinnati
|
36.7%
|
28.7
|
636
|
$17,215.80
|
$132,027.03
|
23
|
Lafayette,
La.
|
36.7%
|
29.0
|
618
|
$14,819.34
|
$116,029.03
|
24
|
Wichita,
Kan.
|
36.6%
|
28.8
|
629
|
$13,007.59
|
$113,515.55
|
25
|
Kansas City,
Mo.
|
36.4%
|
28.8
|
638
|
$17,788.97
|
$141,552.79
|
26
|
Dayton,
Ohio
|
36.4%
|
28.3
|
622
|
$12,382.42
|
$108,469.73
|
27
|
Indianapolis
|
35.9%
|
28.7
|
631
|
$18,308.47
|
$129,493.30
|
28
|
Visalia,
Calif.
|
35.8%
|
28.9
|
630
|
$22,223.47
|
$188,094.73
|
29
|
Milwaukee
|
35.5%
|
28.9
|
640
|
$20,744.89
|
$146,824.06
|
30
|
McAllen,
Texas
|
35.4%
|
28.9
|
628
|
$16,110.79
|
$122,164.06
|
31
|
Springfield,
Mass.
|
35.4%
|
28.9
|
634
|
$18,138.17
|
$153,841.58
|
32
|
Louisville,
Ky.
|
35.2%
|
28.3
|
629
|
$16,558.63
|
$131,745.95
|
33
|
Toledo,
Ohio
|
35.2%
|
28.6
|
626
|
$14,653.31
|
$103,236.73
|
34
|
South Bend,
Ind.
|
35.2%
|
28.7
|
618
|
$20,719.80
|
$108,732.18
|
35
|
Hartford,
Conn.
|
34.9%
|
29.1
|
651
|
$21,116.71
|
$165,514.06
|
36
|
Chicago
|
34.7%
|
29.2
|
656
|
$30,028.04
|
$182,822.36
|
37
|
Denver
|
34.5%
|
29.2
|
669
|
$41,893.16
|
$264,818.96
|
38
|
Detroit
|
34.5%
|
28.7
|
639
|
$20,305.19
|
$134,187.50
|
39
|
Philadelphia
|
34.5%
|
29.2
|
647
|
$25,502.32
|
$169,603.21
|
40
|
Baton Rouge,
La.
|
34.4%
|
28.9
|
622
|
$21,373.95
|
$148,897.72
|
41
|
Nashville,
Tenn.
|
34.3%
|
28.8
|
645
|
$25,281.95
|
$183,288.32
|
42
|
Birmingham,
Ala.
|
34.3%
|
28.7
|
619
|
$16,228.86
|
$132,229.09
|
43
|
Jackson,
Miss.
|
33.9%
|
29.1
|
608
|
$18,286.91
|
$132,451.21
|
44
|
Greenville,
S.C.
|
33.9%
|
28.4
|
623
|
$16,127.42
|
$126,502.11
|
45
|
Boston
|
33.9%
|
29.2
|
665
|
$38,351.23
|
$247,576.30
|
46
|
Richmond,
Va.
|
33.6%
|
29.0
|
644
|
$23,007.95
|
$176,419.26
|
47
|
Oklahoma
City
|
33.5%
|
28.6
|
633
|
$17,209.35
|
$138,535.70
|
48
|
New
Orleans
|
33.3%
|
29.3
|
634
|
$24,349.32
|
$164,404.32
|
49
|
Tulsa,
Okla.
|
33.2%
|
28.6
|
627
|
$16,493.62
|
$127,791.37
|
50
|
Washington
|
33.1%
|
29.3
|
668
|
$38,052.17
|
$258,911.99
|
51
|
Dallas
|
32.7%
|
29.2
|
641
|
$25,572.88
|
$182,117.91
|
52
|
Colorado Springs,
Colo.
|
32.6%
|
28.7
|
645
|
$25,351.25
|
$201,010.39
|
53
|
Portland,
Maine
|
32.6%
|
28.7
|
646
|
$22,183.19
|
$165,615.77
|
54
|
Greensboro,
N.C.
|
32.4%
|
28.8
|
628
|
$17,186.36
|
$127,915.55
|
55
|
Fayetteville,
N.C.
|
32.3%
|
28.9
|
615
|
$13,534.71
|
$123,160.41
|
56
|
Houston
|
32.1%
|
29.2
|
644
|
$27,804.07
|
$181,083.60
|
57
|
Springfield,
Mo.
|
32.1%
|
28.3
|
626
|
$13,284.32
|
$119,473.33
|
58
|
Charlotte,
N.C.
|
32.1%
|
29.1
|
644
|
$23,907.17
|
$168,701.46
|
59
|
Knoxville,
Tenn.
|
32.0%
|
28.3
|
626
|
$16,455.36
|
$126,937.99
|
60
|
Little Rock,
Ark.
|
31.9%
|
28.7
|
621
|
$15,786.96
|
$123,538.99
|
61
|
New York
|
31.9%
|
29.6
|
677
|
$53,787.82
|
$273,894.48
|
62
|
Chattanooga,
Tenn.
|
31.7%
|
28.4
|
626
|
$14,241.67
|
$124,853.12
|
63
|
Portland,
Ore.
|
31.6%
|
29.0
|
655
|
$32,047.37
|
$229,908.51
|
64
|
Fresno,
Calif.
|
31.4%
|
29.1
|
643
|
$25,742.96
|
$204,774.53
|
65
|
Austin,
Texas
|
31.4%
|
29.4
|
663
|
$33,777.22
|
$216,815.86
|
66
|
Bakersfield,
Calif.
|
31.2%
|
29.0
|
633
|
$23,373.57
|
$190,823.16
|
67
|
Huntsville,
Ala.
|
30.9%
|
28.5
|
628
|
$15,719.44
|
$131,351.49
|
68
|
Raleigh,
N.C.
|
30.9%
|
29.3
|
658
|
$26,454.24
|
$180,963.67
|
69
|
Columbia,
S.C.
|
30.9%
|
29.0
|
619
|
$16,075.42
|
$124,914.19
|
70
|
Augusta,
Ga
|
30.8%
|
29.0
|
620
|
$15,363.71
|
$130,371.16
|
71
|
Atlanta
|
30.8%
|
29.1
|
635
|
$22,760.54
|
$166,181.94
|
72
|
Modesto,
Calif.
|
30.5%
|
29.0
|
639
|
$29,653.92
|
$215,497.31
|
73
|
Savannah,
Ga.
|
30.4%
|
28.8
|
626
|
$18,376.29
|
$147,348.88
|
74
|
Seattle
|
30.3%
|
29.3
|
668
|
$45,882.32
|
$284,327.82
|
75
|
Memphis,
Tenn.
|
30.2%
|
29.0
|
622
|
$21,052.41
|
$140,400.01
|
76
|
Charleston,
S.C.
|
30.2%
|
29.1
|
636
|
$24,014.39
|
$174,834.19
|
77
|
San
Antonio
|
30.0%
|
29.1
|
630
|
$20,275.56
|
$162,308.66
|
78
|
Virginia Beach,
Va.
|
29.8%
|
29.1
|
630
|
$19,269.35
|
$175,349.20
|
79
|
Jacksonville,
Fla.
|
29.1%
|
29.1
|
630
|
$20,925.15
|
$154,757.97
|
80
|
Boise City,
Idaho
|
28.7%
|
28.5
|
639
|
$21,131.74
|
$157,950.97
|
81
|
Sacramento,
Calif.
|
28.6%
|
29.4
|
657
|
$35,569.75
|
$249,060.49
|
82
|
Phoenix
|
28.4%
|
28.8
|
645
|
$25,829.34
|
$194,316.32
|
83
|
El Paso,
Texas
|
28.1%
|
29.4
|
633
|
$15,891.58
|
$142,054.38
|
84
|
San
Francisco
|
28.1%
|
29.9
|
691
|
$96,045.17
|
$462,724.33
|
85
|
Mobile,
Ala.
|
27.3%
|
28.6
|
618
|
$17,354.12
|
$130,894.95
|
86
|
Los
Angeles
|
27.3%
|
29.5
|
664
|
$56,305.01
|
$339,475.05
|
87
|
Spokane,
Wash.
|
27.1%
|
28.6
|
637
|
$20,713.56
|
$168,012.16
|
88
|
Orlando,
Fla.
|
26.9%
|
29.0
|
639
|
$23,062.92
|
$171,350.20
|
89
|
Miami
|
25.9%
|
29.4
|
652
|
$32,747.98
|
$208,555.15
|
90
|
San Diego
|
25.6%
|
29.6
|
677
|
$58,296.55
|
$376,406.45
|
91
|
Albuquerque,
N.M.
|
25.4%
|
29.1
|
638
|
$21,168.90
|
$164,236.37
|
92
|
Tampa,
Fla.
|
25.2%
|
29.1
|
641
|
$23,156.26
|
$166,716.42
|
93
|
Reno, Nev.
|
24.9%
|
28.9
|
649
|
$28,798.00
|
$213,222.64
|
94
|
Tucson,
Ariz.
|
24.8%
|
28.9
|
637
|
$18,669.74
|
$157,116.08
|
95
|
Lakeland,
Fla.
|
24.1%
|
29.0
|
625
|
$18,232.45
|
$145,477.68
|
96
|
Las Vegas
|
22.9%
|
29.2
|
644
|
$28,170.57
|
$202,295.60
|
97
|
Palm Bay,
Fla.
|
22.3%
|
28.7
|
643
|
$20,985.97
|
$157,738.78
|
98
|
Honolulu
|
21.8%
|
29.4
|
684
|
$55,104.63
|
$407,641.26
|
99
|
Fort Myers,
Fla.
|
19.8%
|
29.0
|
640
|
$24,074.23
|
$179,450.90
|
100
|
Sarasota,
Fla.
|
17.9%
|
28.8
|
639
|
$24,756.05
|
$173,760.11
|
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online loan
marketplace, empowering consumers as they comparison-shop across a
full suite of loan and credit-based offerings. LendingTree
provides an online marketplace which connects consumers with
multiple lenders that compete for their business, as well as an
array of online tools and information to help consumers find the
best loan. Since inception, LendingTree has facilitated more than
65 million loan requests. LendingTree provides free monthly credit
scores through My LendingTree and access to its network of over 500
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Inc. For more information go to www.lendingtree.com, dial
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MEDIA CONTACT:
Megan Greuling
704-943-8208
Megan.greuling@lendingtree.com
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