Real estate brokers and agents love to track the moves of millennials, those born after 1980 and the first generation to come of age in the new millennium. We want to understand where millennials are moving.
There are 43.5 million millennials in the U.S. and the older group of millennials (aged 25 to 34) make up 13.6% of the U.S. population. However, they make up 30% of the current population of existing-home buyers. That’s a significant segment of the home buying population.
Where Millennials are likely to buy a home
Realtor.com recently published an article listing the top 10 cities millennials are most likely to buy a home in 2016. The rankings were set using a unique calculation. It takes into account the realtor.con proprietary 2016 Sales & Price projections, the representation of millennial users among viewers of “for sale” listing pages on realtor.com from July to October, and the share of the head of households aged 25 to 34 relative to all heads of households, from 2015 Nielsen Pop-Facts.
This list predicts where millennials are moving from renters (or roommates with the parents) to owners of real estate.
San Diego made the list ranking at number six. Here is the list including the other nine cities that made the list.
Where millennials are moving in 2016?
1. Atlanta, GA
Median list price: $234,000
Population share of older millennials (24 to 35 years old): 13.6%
With an affordable housing market and plethora of job opportunities, “Hotlanta” is the perfect place for a young millennial to move and start growing roots. Add a low cost of living, vibrant nightlife and hip-hop scene, and watch those young professionals flock to the ATL, a top place where millennials are moving in 2016.
2. Pittsburgh, PA
Median list price: $149,000
Population share of older millennials: 12.3%
This former steel town that’s home of the Steelers has had a sizable youth renaissance. Millennials are packing their things and moving here in droves. People have likened this city to Portland. Very low housing costs, good public transportation, a lively nightlife, and a revitalized waterfront all add up to an attractive destination for young professionals starting their careers.
3. Memphis, TN
Median list price: $164,000
Population share of older millennials: 13.5%
This city has a slightly higher percentage of 25- to 35-year-olds that the average U.S. city with the rate rising. The affordable housing market and low cost of living in Memphis have attracted many millennials who are starting the American dream. Also worth noting, the median household income in Memphis is increasing more quickly than the national average.
4. Boston, MA
Median list price: $408,000
Population share of older millennials: 13.8%
“Beantown” is filled with higher education institutions, like Harvard and MIT. In fact there are 85 colleges and universities in the greater metro area. Graduates often times start growing roots in the same city they studied in, because of the bond that was created over the years of education. Even with the high home prices, Boston still attracts millennials. A wealth of education resources and abundant job opportunities – especially those in the tech sector – make it a great place to build a career and business.
5. Austin, TX
Median list price: $367,000
Population share of older millennials: 16.5%
Hipsters have been keeping Austin weird for years. With a 24% higher share of 25- to 34-year-olds than the nation as a whole, Austin is ripe for a millennial home-buying spree. Austin keeps tearing along as the fastest growing big city in the country. According to recent census figures, its population shot up 2.9 percent during the 12 months that end in July of 2014. Along with other segments of the population, this is a place where millennials are moving. Tech jobs and startups are plentiful and the city’s unemployment rate is a mere 3.3%.
6. San Diego, CA
Median list price: $585,000
Population share of older millennials: 15.5%
San Diego is driving millennials in droves to Southern California. Despite the high home prices, this city attracts millennials with its strong biotech industry, quality universities, incredible weather, and picturesque landscape. Many millennials value communities that are walkable with a mix of residential and commercial uses. Downtown San Diego has seen decades of improvement and offers a place to live right in the middle of a thriving mixed-use community.
7. Seattle, WA
Median list price: $398,000
Population share of older millennials: 14.9%
The tech community – and coffee community – has had a strong influence on this city for decades. Companies like Microsoft, Amazon, and Expedia are headquartered in Seattle. With tech jobs plentiful, young professionals find many opportunities here. Check out this incredible graphic showing a constellation of Seattle-area tech companies. Here are the top 12 Seattle neighborhoods for millennials. Nerd Wallet ranked Seattle-Bellevue-Everett, Washington as the third best place in the U.S. for tech jobs.
8. Houston, TX
Median list price: $312,000
Population share of older millennials: 14.4%
A rich history of hip-hop and food have made Houston attractive to many younger people. Pete Wells of the New York Times boldly called Houston “one of the most exciting places in the U.S. to eat.” These are strong words from one of the most prominent food critics. From 2000 to 2012, Houston saw a 49% increase in its percentage of college graduates aged 25 to 34, according to City Observatory. Houston also has 26 of the Fortune 500 companies headquartered in the city.
9. Denver, CO
Median list price: $449,000
Population share of older millennials: 14.9%
Want to attract 25- to 35-year-olds to your city? Provide legal marijuana and an abundance of microbreweries. Denver has both as well as mountains, fresh air, and tech jobs. A December 2016 Denver Business Journal article wrote that, “23 percent of Denver-area tech leaders plan expanding their staff and another 65 planned to hire over the next six months to fill existing jobs.” What’s not to love?
10. Charlotte, NC
Median list price: $230,000
Population share of older millennials: 13.1%
Charlotte ranks second among the country’s 25 largest cities for population growth from 2010 to 2013, topped only by Austin. Charlotte known as a banking and finance center has also become home to two millennial-targeted digital start-ups. The city is also the center for NASCAR. To attract a larger millennials following, NASCAR races now feature DJs, foam parties, and go-karts. So it seems like all industries are closely following the moves of millennials.