Some experts predict that Millennials will be the driving factor of housing in 2017, and others question whether rising interest rates will lock them out of the market.
With over 75 million Millennials, the largest living generation, it is no wonder companies pour so much attention and even resources into trying to understand the new generation.
While Millennials delayed longer than other generations before settling down and buying a home, they may finally be ready to move into the market.
Whatever their reasons for delaying, some cities boast homeownership rates among Millennials that are much higher than the national average, according to the second annual study by SmartAsset, which used data from the U.S. Census Bureau’s 2015 survey.
The study ranked the 200 largest U.S. cities according to the under-35 homeownership rate in 2015 and the change in the under-35 homeownership rate between 2006 and 2015. It then averaged those rankings, giving equal weighting to both factors and assigned a score based on the final average ranking. The city with the highest ranking received a score of 100 and the city with the lowest ranking received a score of 0.
While other cities saw a decrease in homeownership rates among Millennials over the past decade from 40% to about 32%, the rate in some of these cities increased. What do these cities have that others don’t? That’s for you to decide, but one thing we do know: not even high home prices held Millennials back in some of these cities.
Do they have better jobs? More opportunities? A more steady market? Whatever the case, here are the top 10 cities with the highest homeownership rate among Millennials:
10. Omaha, Nebraska,
Score: 88.32
As the largest city within the top 10, Omaha boasts a homeownership rate among Millennials of 29.51%, an increase from 28.13% in 2006. This is a change of 1.38 percentage points.
9. Anchorage, Alaska,
Score: 90.22
This city has the highest median home values at $302,500, but that didn’t hold Millennials back. The homeownership rate among Millennials rests at 32.32%, an increase from 31.78% in 2006, and a change of 0.54 percentage points.
8. Chattanooga, Tennessee
Score: 90.76
As one of the few cities with an increase in homeownership rates, this city made the list after seeing the seventh highest increase in the study. The homeownership rate among Millennials rests at 30.81%, an increase from 28.93% in 2006, and a change of 1.88 percentage points.
7. Fort Wayne, Indiana
Score: 91.85
While the homeownership rate in this city dipped slightly, it remains strong, possibly due to the low $105,900 median home price. The homeownership rate among Millennials rests at 36.8%, a decrease from 37.73% in 2006, and a change of 0.93 percentage points.
6. Cary, North Carolina,
Score: 92.39
This city recently ranked one of the best cities in 2016 due to its safety and booming economy, adding to its attractiveness. The homeownership rate among Millennials rests at 35.51%, an increase from 35.89% in 2006, and a change of 0.38 percentage points.
5. Peoria, Illinois,
Score: 95.65
Touting the highest increase in the study, the homeownership rate shot up among Millennials in Peoria over the past decade. This may come as no surprise considering the median home value is only $132,000. The homeownership rate among Millennials rests at 34.9%, an increase from 26.89% in 2006, and a change of 8.01 percentage points.
4. Roseville, California
Score: 98.1
This city is located just 20 miles from Sacramento, and proved to be an attractive place for many Millennials. The homeownership rate among Millennials rests at 41.21%, an increase from 36.99% in 2006, and a change of 4.22 percentage points.
3. Bakersfield, California
Score: 98.37
This city is not small, in fact it is the ninth-largest city in California, and yet still boasts a relatively affordable median home price of $237,600. The homeownership rate among Millennials rests at 40.29%, an increase from 35.17% in 2006, and a change of 5.12 percentage points.
2. Elk Grove, California,
Score: 99.73
After its population shot up by 100,000 people since 2000, the median home price went up right along with it to $350,300. Think that’s steep? Not compared to its neighbor, San Francisco, whose median home price rests at $941,400. The homeownership rate among Millennials rests at 60.76%, the highest rate of any other city, and an increase from 59.68% in 2006. This is a change of 1.07 percentage points.
1. Sioux Falls, South Dakota
Score: 100
This city could be the perfect place for Millennials to lay down roots as it was rated one of the best places for children and has an impressive educational record. The homeownership rate among Millennials rests at 44.95%, an increase from 40.35% in 2006, a change of 4.6 percentage points.
