Where Millennials Are Buying Homes in 2023

The millennial generation, born between 1981 and 1996, is having a major impact on the U.S. housing market.

While high costs continue to present challenges, millennials are willing to invest in real estate in cities that offer strong career opportunities, lifestyle benefits, and more.

In many northeastern states like Massachusetts, New York, and New Jersey, millennials make up the largest share of homebuyers.

Over 60% of home purchase loans in these states are going to millennials looking to put down roots.

The Midwest is also attracting millennial homebuyers, with states like Minnesota, Illinois, and North Dakota reporting over 60% millennial home loan activity as well.

Millennials tend to flock to major metropolitan areas that offer abundant jobs, entertainment, and culture.

Not surprisingly, popular millennial homebuying locations include tech hubs like San Jose and big cities like New York and Los Angeles.

However, millennial preferences are also reshaping suburban housing markets near major cities.

Areas just outside urban centers now offer millennial homebuyers lower costs while still providing reasonable commutes.

While buying a home remains challenging for many millennials, over 40% are working side hustles to save for down payments and become homeowners.

Millennials desire modern, low-maintenance homes with smart technology and upscale finishes.

Proximity to amenities like shops, restaurants, and parks is also important to millennial buyers.

The millennial generation will continue to be a major force shaping U.S. real estate in the years ahead.

Their preferences are defining where people are buying homes and transforming suburban and urban housing markets across the country.