By now, most consumers know that it is a “renter’s market” much more than a “buyer’s market”. Now here is this more prevalent than among millenials (those born between 1982 and 2004).
According to RealtorMag.com, their rates of homeownership plunged “from 40 percent in 2006 to 32 percent in 2015”. Yet, there are still many parts of the country where millenials actually represent the larger percentage of buyers rather than renters. For example, Elk Grove, CA is a city in which millenials have about 60% of the market share in terms of home buying.
Where are the millennial “magnet” cities? And why are they buying in specific locations? The current list from SmartAsset.com points towards these ten locations:
- Sioux Falls, SD – Studies indicate that excellent schools make this a great place for raising kids
- Elk Grove, CA – A commuting spot for those working in San Francisco and Sacramento it is affordable and appealing
- Bakersfield, CA – Affordable pricing and convenient location makes this popular with millenials
- Roseville, CA – Close to the state capital but still a reasonably sized city, it is an increasingly appealing spot for millenials
- Peoria, IL – Very affordable and with plenty of employment opportunities, it has seen the highest increase in millenials
- Cary, NC – Safe and enjoying a booming economy, it is popular with all groups, particularly millenials
- Fort Wayne, IN – Most affordable city on the list, it has good schools and employment
- Chattanooga, TN – Currently booming in terms of home sales, it is one of the most appealing to millenials
- Anchorage, AK – Increasing home values and a solid economy make it a popular choice
- Omaha, NB – Large and stable, around 28% of millenials own their home here
So, you know where and why, but what does that mean for a potential property owner or investor? Essentially, if the “under 35” crowd is currently investing in a city, it translates to growth in the future.
Most are settling in because of steady employment, proximity to growth markets and good education. This paints a good portrait of a community in which to invest in property.
Millenials attract others of the same age, and though these magnet cities show millenials’ willingness to invest, the group in general is more prone to rentals. With college debt, new careers and young families, they are a group that struggles to achieve home ownership. Being a reliable landlord in any of these ten cities is a very savvy investment opportunity.
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