Tag Homebuyer Characteristics

A growing number of Americans are opting to age in place or downsize—creating even more competition for younger buyers in an already challenging post-pandemic real estate market. While buyers over 55 years old account for 21.2% of all homebuyers nationally, the numbers vary widely by location.

Some U.S. locations prove more favorable to young adults seeking homeownership than others. We calculated the share of all home purchase loans taken out by applicants under 25 years old in 2023, then ranked metros and states accordingly.

In order to cope with rising prices, millennials are taking out larger home loans with higher loan-to-value ratios than older generations. To identify where millennials are buying homes, researchers ranked metros and states according to the millennial share of conventional home purchase loans originated in 2023.

The median home purchase price for millennials in 2023 was $415,000—nearly 77% higher than the median home purchase price for Gen Z buyers, and second only to the Gen X median purchase price of $445,000. These are the U.S. locations where millennials are buying the most expensive homes.

Nationally, the minority homeownership gap—defined here as the difference between the White homeownership rate and the minority homeownership rate—has exceeded 20 percentage points for at least the past two decades. Locally, this gap varies due to factors such as an area’s demographic makeup, housing costs, employment opportunities, and historical homeownership rates. Researchers identified the locations with the largest minority homeownership gap.

While baby boomers comprise just over 20% of the U.S. population, they account for nearly 38% of homeowners nationwide. However, baby boomer homeownership rates vary across local and state markets. Researchers calculated the percentage of owner-occupied households that are headed by baby boomers, then ranked locations accordingly.