Like a swarm of locusts, a herd of zombies, or a gaggle of hipsters at a vintage record store, Millennials are beginning to flood into the housing market like never before. Millennials have been satisfied with renting for the past couple of years, but that trend is starting to shift as the oldest Millennials are beginning to reach their mid-thirties. Markets with cold-sweat inducing real estate prices are not even deterring their desire to buy.
But what cities are Millennials looking to buy in most? According to HousingWire, Boston was at the top of the list with 52.5 percent of all purchase mortgage requests coming from Millennials. In addition, the average down payment was $56,947 and the average loan was $343,783.
Pittsburgh (48.96%), Washington, D.C. (48.17%), Des Moines (48.15%), and Minneapolis (47.34) rounded out the top five. Washington, D.C. had the largest average down payment at $69,348 and also had the highest average loan amount at $352,719 among all cities on the list.
Breaking down the Millennial generation even further reveals that Hispanic Millennials are fueling population growth and homeownership demand among all young adults.
Overall, 87 percent of mortgage professionals believe the mortgage purchase market will be somewhat to extremely active in 2016 with an anticipated increase of 11 percent.
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