If you look at the latest data, Millennial homebuyers aren’t flocking to the big cities or urban centers like most would assume. They’re heading to the outliers — smaller, more suburban towns where a slightly longer commute means more affordable housing, safer streets and a lower cost of living.
In fact, according to the Ellie Mae Millennial Tracker, the top cities among Millennial buyers last month were Indiana, Pennsylvania (about an hour from Pittsburgh); Bay City, Michigan (not far from Flint); and Watertown, South Dakota (a short drive from Sioux Falls).
Porch.com found that Millennials are moving increasingly toward “18-hour” cities — places that aren’t 24-7 like New York or Los Angeles but still offer nightlife, job opportunities and plenty of big-city amenities. Some of these include Greensboro, North Carolina; Saint Paul, Minnesota; Milwaukee; Detroit; and Aurora, Colorado. All five have an average new resident age of 24 or younger.
Heading Out of State
These buyers aren’t just going against the grain city-wise. According to a Porch.com study, Millennials are also making some surprising out of state moves. North Dakota, for example, has the youngest median age of new residents in the last year at just 23. Colorado and Iowa’s new residents average just 25 years old. Kentucky and Nebraska also rank among the youngest.
According to Erica Harvill, vice president of corporate communications at Ellie Mae, these moves come down to a few things: inventory, pricing and timing.