Millennials are now ages 18 to 36, and while they have pushed off entering the housing market longer than other generations, they are now moving towards settling down.
Actually, as Millennials get older, they are increasing homeownership rates faster than in previous years, according to research from Fannie Mae.
Their credit scores are improving as well as more Millennials move toward conventional loans, and away from FHA-backed loans, bringing the average FICO score for Millennial borrowers up slightly, according to Ellie Mae, a provider of software solutions and services for the residential mortgage industry.
But what areas are attracting the largest living generation to them as they look to enter the housing market? An article on Fannie Mae’s blog, The Home Story, provides the answer.
From the article:
The study’s top markets tended to have one metric in common: Millennial homebuyers were able to negotiate attractive front-end ratios on mortgages, a statistic that indicates the portion of a borrower’s income necessary to cover monthly mortgage payments. The percentage is calculated by dividing monthly housing expenses by gross income.
It’s a sign that affordability and income are pivotal factors for Millennials when it comes to where they buy a home, analyst Bret Fortenberry told Fortune.
5. Polk County, Iowa
- This country is the most populated in Iowa and includes the state’s capital Des Moines.
- Zillow’s median home price: $155,500
- Home values increased 4.8% over the past year
- Zillow predicts home prices will rise 3% over the next year
4. Weber County, Utah
- This county encompasses from the Wasatch Mountains to the Great Salt Lake, and includes the city Ogden
- Zillow’s median home price: $171,700
- Home values increased 7.6% over the past year
- Zillow predicts home prices will rise 4.8% over the next year
3. Kent County, Michigan
- This is the economic and manufacturing center of West Michigan
- Zillow’s median home price: $150,200
- Home values increased 7.7% over the past year
- Zillow predicts home prices will rise 2.9% over the next year
2. Denver County, Colorado
- This county in Colorado includes the state’s capital-Denver
- Zillow’s median home price: $331,100
- Home values increased 12.8% over the past year
- Zillow predicts home prices will rise 4.9% over the next year
1. Utah County, Utah
- This county in Utah shows the fastest employment growth in the U.S.’s 342 largest counties
- Zillow’s median home price: $229,600
- Employment grew 6.7% in 2015