Where Are the Nation's Young Homebuyers? Boston, Pittsburgh and D.C.

New LendingTree study analyzes mortgage request, loan amounts and housing costs for buyers under thirty-five

CHARLOTTE, N.C., March 17, 2016 - Millennials in Boston, Pittsburgh and Washington D.C. pursue home ownership more than their counterparts in any of the nation's top 50 cities, according to a new study by LendingTree®, the nation's leading online loan marketplace. They're at the forefront of a growing nationwide trend of young buyers returning to the housing market.

LendingTree analyzed mortgage requests for consumers 34 years and under in the past 12 months, along with requests from the total population of mortgage-seekers based on the location of the property to be mortgaged. The city ranking is created from the percentage of all purchase mortgage requests that were submitted by consumers in the millennial generation.

Boston, MA tops the list with 52.5% of all purchase mortgage requests coming from millennials, followed by Pittsburgh, PA (48.96%) and Washington, D.C. (48.17%). Average mortgage loans to young borrowers in those cities are $343,783.11, $161,083.33 and $352,719.90 respectively.

On average, 41.36% of all mortgage requests through LendingTree come from applicants under 35 years old. The average age for a home buyer in that age group is twenty-nine. Their mortgage loans average $220,949.02, and their down payments $32,759.66.

"The under-35 crowd had been, for some years, hesitant to enter the housing market, but we're seeing that start to shift," said Doug Lebda, CEO of LendingTree. "The data all points to the fact that millennials are increasingly eager to own rather than rent, and even the incredibly high real estate prices in some markets don't necessarily deter them."

​While San Francisco millennials signed on for the highest average mortgage loans in the country ($505,160.60), requiring the biggest average down payments ($162,474.11), the city also sees a relatively large percent of home loan requests coming from millennials (42.32%), underscoring the fact that San Francisco is home to top-earning young professionals well-positioned to afford expensive housing costs.

Mortgage loans made to millennials in Buffalo, New York, meanwhile, are the nation's lowest at just $131,232.06 (down payments average $21,915.93 for this age group). The city also boasts the overall lowest monthly mortgage payment for young homeowners, at just $747.86, helping explain why the city has seen an upswing in young people moving there.

"Overall, we've seen a 28.5% increase in loan requests from millennials this past year over the prior one, evidence that the appeal of home ownership is strong - and growing- for young buyers," said Lebda.
 

Rank    City    % of Purchase 
Requests from
<35 Yrs
   Avg Credit 
Score
(<35 Yrs)
   Avg Age 
of Buyer
   Avg Down 
Pmt
(<35 Yrs)
   Avg Loan
Amt 
(<35 Yrs)
   Avg Monthly 
Pmt
(<35 Yrs)
1   Boston MA   52.46%   727   28   $56,947.94   $343,783.11   $1,911.77
2   Pittsburgh PA   48.96%   718   29   $21,787.38   $161,083.33   $929.75
3   Washington DC   48.17%   739   30   $69,348.98   $352,719.90   $2,014.06
4   Des Moines IA   48.15%   708   29   $17,669.19   $136,276.74   $785.78
5   Minneapolis MN    47.34%   715   29   $28,652.93   $198,834.31   $1,140.44
6   Columbus OH   45.57%   717   29   $26,236.45   $170,434.04   $973.06
7   Chicago IL   45.48%   731   30   $44,597.48   $259,863.04   $1,476.97
8   Milwaukee WI   45.12%   714   29   $22,501.73   $166,315.19   $956.53
9   Omaha NE   44.64%   710   28   $21,381.27   $184,036.70   $1,026.89
10   Rochester NY   44.51%   718   30   $24,590.07   $137,213.09   $789.23

 
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METHODOLOGY
LendingTree analyzed mortgage requests for consumers 34 years and under in the past 12 months, along with requests from the total population of mortgage-seekers based on the location of the property to be mortgaged. The city ranking is created from the percentage of all purchase mortgage requests that were submitted by consumers ages 18 to 34.