Editor’s Note: This story originally appeared on Construction Coverage.
Many millennials are reaching the age where they are getting ready to settle down, form households, and have children — all of which require more space, and for many, buying property.
Millennials are also deep enough into their careers to accumulate savings and pay off student loans, a significant barrier to homeownership. Yet while the median millennial income has increased in the last four years, home prices have grown much faster.
In spite of the growing gap between millennial home prices and millennial incomes, millennials are entering their prime earning years, making it a pivotal time to buy a home.
Despite millennials earning less than Gen X, they have been spending more on home purchases than any other generation.
To determine the locations where millennials are buying the most expensive homes, researchers at Construction Coverage compared the median purchase price in 2021 for millennial homebuyers with that of all homebuyers.
The data used in this analysis is from the Home Mortgage Disclosure Act. Find details on our methodology at the end. Here are the U.S. metropolitan areas where millennials are buying the most expensive homes relative to other buyers.
15. Austin-Round Rock-Georgetown, TX
- Difference in home value between millennials and all buyers: +2.2%
- Median home value (millennial buyers): $455,000
- Median home value (all buyers): $445,000
- Median income (millennial buyers): $137,000
- Median income (all buyers): $140,000
14. Miami-Fort Lauderdale-Pompano Beach, FL
- Difference in home value between millennials and all buyers: +2.4%
- Median home value (millennial buyers): $425,000
- Median home value (all buyers): $415,000
- Median income (millennial buyers): $114,000
- Median income (all buyers): $116,000
13. Raleigh-Cary, NC
- Difference in home value between millennials and all buyers: +2.6%
- Median home value (millennial buyers): $395,000
- Median home value (all buyers): $385,000
- Median income (millennial buyers): $110,000
- Median income (all buyers): $111,000
12. Charlotte-Concord-Gastonia, NC-SC
- Difference in home value between millennials and all buyers: +2.7%
- Median home value (millennial buyers): $375,000
- Median home value (all buyers): $365,000
- Median income (millennial buyers): $104,000
- Median income (all buyers): $102,000
11. Atlanta-Sandy Springs-Alpharetta, GA
- Difference in home value between millennials and all buyers: +2.7%
- Median home value (millennial buyers): $385,000
- Median home value (all buyers): $375,000
- Median income (millennial buyers): $105,000
- Median income (all buyers): $104,000
10. Seattle-Tacoma-Bellevue, WA
- Difference in home value between millennials and all buyers: +2.9%
- Median home value (millennial buyers): $705,000
- Median home value (all buyers): $685,000
- Median income (millennial buyers): $145,000
- Median income (all buyers): $143,000
9. Tampa-St. Petersburg-Clearwater, FL
- Difference in home value between millennials and all buyers: +3.0%
- Median home value (millennial buyers): $345,000
- Median home value (all buyers): $335,000
- Median income (millennial buyers): $99,000
- Median income (all buyers): $99,000
8. Chicago-Naperville-Elgin, IL-IN-WI
- Difference in home value between millennials and all buyers: +3.1%
- Median home value (millennial buyers): $335,000
- Median home value (all buyers): $325,000
- Median income (millennial buyers): $101,000
- Median income (all buyers): $99,000
7. Hartford-East Hartford-Middletown, CT
- Difference in home value between millennials and all buyers: +3.4%
- Median home value (millennial buyers): $305,000
- Median home value (all buyers): $295,000
- Median income (millennial buyers): $96,000
- Median income (all buyers): $95,000
6. Memphis, TN-MS-AR
- Difference in home value between millennials and all buyers: +3.5%
- Median home value (millennial buyers): $295,000
- Median home value (all buyers): $285,000
- Median income (millennial buyers): $93,000
- Median income (all buyers): $92,000
5. Indianapolis-Carmel-Anderson, IN
- Difference in home value between millennials and all buyers: +3.5%
- Median home value (millennial buyers): $295,000
- Median home value (all buyers): $285,000
- Median income (millennial buyers): $86,000
- Median income (all buyers): $84,000
4. Cincinnati, OH-KY-IN
- Difference in home value between millennials and all buyers: +3.6%
- Median home value (millennial buyers): $285,000
- Median home value (all buyers): $275,000
- Median income (millennial buyers): $90,000
- Median income (all buyers): $87,000
3. Grand Rapids-Kentwood, MI
- Difference in home value between millennials and all buyers: +3.6%
- Median home value (millennial buyers): $285,000
- Median home value (all buyers): $275,000
- Median income (millennial buyers): $81,000
- Median income (all buyers): $79,000
2. Louisville/Jefferson County, KY-IN
- Difference in home value between millennials and all buyers: +3.9%
- Median home value (millennial buyers): $265,000
- Median home value (all buyers): $255,000
- Median income (millennial buyers): $75,000
- Median income (all buyers): $73,000
1. Cleveland-Elyria, OH
- Difference in home value between millennials and all buyers: +4.3%
- Median home value (millennial buyers): $245,000
- Median home value (all buyers): $235,000
- Median income (millennial buyers): $85,000
- Median income (all buyers): $84,000
Methodology
The data used in this analysis is from the Federal Financial Institutions Examination Council’s 2021 Home Mortgage Disclosure Act.
To determine the locations where millennials are buying the most expensive homes, researchers at Construction Coverage compared the median price for conventional residential homes with an originated mortgage for millennials and all buyers.
For the purposes of this analysis, the millennial generation was approximated using ages 25 to 44 in the year 2021.
In the event of a tie, the location with the greater median millennial home value was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 residents were included.
