The media wants us to think that too much avocado toast and high student loan payments are keeping millennial real estate leads out of the housing market.
P’shaw, say the folks at Ellie Mae®, the leading cloud-based platform provider for the mortgage finance industry.
“Millennial homebuyers continued to close purchase loans in September 2018, despite interest rates rising to the highest point in the year.”
And, despite rates rising since then this cohort is still in the market to buy homes. Sure, they may be priced out of the markets at the coasts, but that’s not stopping them either.
1. Midland, Michigan
Midland, Michigan, with a population of 44,000 (and growing) is one to emulate for those cities hoping to attract “top talent.” The city’s leaders have made it their mission to beef up “the environment for young talent and entrepreneurs.”
They’ve looked at a number of ways to do this, from playing off its established reputation as a “great place to raise a family, low crime rates and high-quality public schools” to brainstorming the amenities that attract Millennials (as well as a few younger Gen X’ers).
And, it’s working. From November 2018 to January 2019, Midland took the top spot on Ellie Mae’s Millennial Tracker survey, with 92 percent of closed loans going to millennial real estate leads (buyers between the ages of 24 and 42 in 2019).
Having Dow Chemical Company (the city’s largest employer) merge with Dupont and the construction of a $100 million R&D facility in Midland is certainly a magnet for Millennials seeking jobs.
The average age of these borrowers is 30.1, most are married and the largest share used a conventional mortgage with an average loan amount of $121,650.
2. Greenwood, South Carolina
Ninety percent of closed purchase loans in Greenwood, SC, over the past three months, went to millennial real estate leads.
What’s the big deal about the Greenwood real estate market? Jobs, for one. In December, Ascend Performance Materials announced it would spend more than $35 million to expand its current operations in the city, creating a demand for skilled workers.
The city is also committed to a vast expansion of what the city manager calls “quality of life projects to attract a new generation of millennials and others that demand outdoor recreation.”
The word is out. Popular Google searches for the region include:
- is greenwood sc safe
- best neighborhoods in greenwood sc
- moving to greenwood sc
- greenwood sc reviews
- is greenwood sc growing
If you’re an agent working in the Greenwood real estate market, we just gave you five hot blog topics.
You’re welcome.
Millennial real estate leads buying homes in the Greenwood real estate market are younger than those heading to Midland, MI (29.7 is the average age), most are married and have an average FICO score of 731. The average loan is conventional and the average loan amount was $149,391.
3. Williston, North Dakota
Williston’s high placement on Ellie Mae’s list doesn’t surprise local agents. For at least three years now, North Dakota has ranked as the nation’s state with the highest percentage of Millennial residents.
Williston, in particular, consistently ranks as one of the state’s more popular cities, at least for Millennials.
In late 2017, Ellie Mae found that millennial real estate leads made up about two-thirds of the homebuyers in Williston. Between November 2018 and January 2019, however, they make up 87 percent.
Obviously, the city’s draw for the younger generation isn’t waning. Sure, it started with the oil boom, but the city has responded with additional recreational amenities, sports, a diversity in places to eat and drink and more.
The average age of a Williston homebuyer is 29.4, he or she is married and has an average FICO score of 715. They favor conventional loans for an average loan amount of $239,603.