Which cities will millennials call “home” in 2016? As part of the realtor.com 2016 real estate forecast, this article from Yuqing Pan predicts the U.S. markets that are most likely to see a surge of millennial buyers next year.
Is there any part of U.S. life that hasn’t been dramatically altered by the millennial invasion? This vast group of young Americans has already altered general perceptions of job place behavior, pop culture, media consumption, self-entitlement, and acceptable facial hair. But nowhere is its impact greater felt than in the housing market – and that impact is getting bigger all the time. Numbering 43.5 million, the older group of millennials (aged 25 to 34) makes up 13.6% of the U.S. population but fully 30% of the current population of existing-home buyers.
In 2016, millennials have the power to remake the real estate landscape wherever they choose to settle. But where will that be?
You might assume that young people are naturally drawn to the nation’s largest and most renowned metropolises such as New York City and Los Angeles to jump-start their careers and enjoy the full-throttle excitement of big-city life. And you’d be right – at least partly. But here’s the rub: Increasingly, they can’t afford to live in these places. Sure, Brooklyn may be a notorious hipster/millennial mecca, but how many 30-year-olds can afford $1.75 million one-bedroom co-ops? No wonder shrewd young home buyers are increasingly turning to cities that are relatively affordable and have lots of jobs and maybe even a trendy atmosphere all their own.
Here are some of the cities that top the realtor.com ranking of the 10 markets most likely to see a surge of millennial home buyers.
Atlanta. How did the southern mecca that proponents and detractors alike call “Hotlanta” make the very top of our list? Well, there’s the nation’s best hip-hop scene, a vibrant and ever-changing nightlife, and tons of job opportunities. Oh, and did we mention affordable housing? It’s little wonder that Atlanta was ranked the best city for new college graduates and young professionals by MarketWatch, due to its high median starting salaries and cheap, cheap, cheap living costs.
Austin. Is there a city more hipster-plentiful than Austin, Texas? With a 24% higher share of 25- to 34-year-olds than the nation as a whole, Austin is an ample showcase of what young creatives and entrepreneurs are cranking out these days (especially if you come for the city’s South by Southwest festivals of film, interactive media, and music). It’s now known as a center for tech jobs and startups, as well as for pharmaceutical and biotechnology companies. The city’s latest unemployment rate was only 3.3%.
San Diego. A strong economy led by the biotech industry, high-quality universities, year-round mild weather, gorgeous beaches with rich wildlife – do young people need more reasons to move to San Diego?
Seattle. The headquarters of Microsoft, Amazon, and many other tech companies large and small, the greater Seattle area has welcomed an influx of educated, young tech workers, which contributes to its uniquely cool culture.
Houston. Twenty-six Fortune 500 companies call Houston home, and the abundance of career opportunities attracts millions of young professionals every year. By some metrics, it’s the nation’s top urban job creator. From 2000 to 2012, Houston saw a 49% increase in its percentage of college graduates aged 25 to 34, according to City Observatory.
Denver. Mountains, fresh air, sunshine, tech jobs … Denver checks off many of the boxes for the features millennials want in a place to live.
Charlotte. The Queen City ranks No. 2 among the country’s 25 largest cities for population growth from 2010 to 2013, topped only by Austin.
