The housing market is a function of the interaction of supply and demand. Since 2016, Millennials make up the largest homebuyer demographic in the U.S. even though they, as a group, are not yet into the age that has the greatest demand. Those aged 31 are the most common first-time homebuyers while the highest age frequency among Millennials is 25, then 24 and 26. Where Millennials ultimately locate and live will have a material impact on respective local housing markets. While Millennials aged 25 to 34 make up just 13.6 percent of the country’s population, the group represents 30 percent of the population of existing homebuyers according to Realtor.com.
So where are Millennials moving? Ellie Mae has a Millennial Tracker that looks at closed loan applications among those born from 1980 to 1999. Click https://elliemae.com/millennial-tracker/register https://elliemae.com/millennial-tracker/register to register on Ellie Mae to examine their findings.
Note the recurring themes among these cities in energy (oil and gas), universities, manufacturing and government employment. These are merely the markets where Millennials make up the greatest percentage of all homebuyers and are not ranked on the total number of buyers.
To read the entire article from USA Today click https://www.usatoday.com/story/money/personalfinance/2017/10/07/where-millennials-moving-answer-may-surprise-you/734212001/
These are all affordable markets in comparison to major Metropolitan Statistical Areas, although the El Paso-Las Cruces CSA is slightly greater than 1 million.
The future of housing is a function of where Millennials ultimately end up – and they as a population cohort are behaving differently than past generations, at least at this time.
Ted