More and more millennials entering the housing market, are choosing the Denver metro area for their real estate needs. According to DSNews.com. “Millennials make up the largest share of homebuyers in the U.S., according to a new report from LendingTree, surpassing older — and richer — generations. In fact, new data shows millennials have dominated the housing market for the past decade.”
This is exciting news as the Denver area grabbed second place as the most popular metro for millennial homebuyers. In the article this is how they scored:
No. 2: Denver
Share of mortgages offered to millennials: 61.35%
Average millennial age: 32.23
Average credit score among millennials: 735
Average down payment amount among millennials: $74,477
In a quote from the same article DSNews answers the question of Why millennials dominate the housing market.
“Given how often we hear about the financial woes facing millennials, it might be surprising to learn that a majority of mortgage purchase requests come from members of the generation. An average of 52.88% of purchase requests come from millennials — 31.61% percentage points higher than the share of requests from Gen Xers (born between 1965 and 1980, or ages 42 to 57 in 2022), the generation that makes the second-most mortgage requests. That said, the trend makes sense for various reasons.
For example, many millennials are at an age where they’re starting families and earning more money. This means they not only have more of a financial ability to become homeowners, but they’re incentivized by reasons like needing to provide for their loved ones in a way they may not have been when more of them were in their 20s.”
In the Colorado Biz Magazine, millennials represented 60% of Denver homebuyers in 2020 and that number continues to remain level and they say, “As more inventory becomes available and people continue to relocate to the Centennial State, it will be important to understand what motivates this new generation of home buyers and what they search for in a property.”
This trend has continued thru 2022 as millennials continued to relocate all along the front range.
At Home Colorado points out that, “Research by the National Association of Realtors® in their recently released 2022 Home Buyer and Seller Generational Trends report found that millennials (born 1981 to 1996) made up 43% of the housing market in 2021, up from 37% in 2020.”
What Are Some Target Areas for Millennial’s in Denver Housing Market?
So, as these newest homeowners, the millennials, enter the Denver housing market several neighborhoods have shown to be a really attractive fit.
1-Rino River, North Art district known for its share of a vibrant art scene and restaurants offer cool nightlife options.
2-Lowlo, Highland North of downtown, known for hip bars, coffee shops and boutiques, enhanced by city views.
3-Berkeley offers a strong sense of community, with plenty of exciting, affordable home options and a laid-back vibe.
4-Capitol Hill are is diverse, rich with cultural scene, diverse dining opportunities.
5-Baker is a gentrified neighborhood known for its architecture, diversity and food and drink scene.
These are some of the many great neighborhoods in the Denver metro area popular with millennials who can consider their priorities and explore different areas that best fit their lifestyle.
If you are a millennial harboring a desire to enter the Denver housing market and require more in-depth information about living, playing and loving Denver give Katchen Company a call. Kathy and Ed can help you find perfection, a neighborhood that will be sure to provide opportunities to discover a new, incredible living experience.
Kathy and Ed Boyle are the co-owners of Katchen Company Real Estate, a residential and commercial brokerage in the greater Denver Metro Area. They are the Denver Urban Experts, helping their clients buy, sell, and invest in the Denver Metro Area.
*KEY TAKEAWAYS by Investopedia
“A generational shift in homebuying is underway, with millennials beginning to purchase residential real estate. Technology plays a big part in millennial house-hunting, with this generation turning to mobile devices to search, view properties, and communicate with real estate agents. With fewer starter homes available, millennials are increasingly buying nicer first homes than previous generations did. During the COVID-19 pandemic, as home showings went solely online, millennials were among the groups buying properties. Millennials as a group tend to prefer to live close to their jobs.”
Videos published on the Katchen website presents many diverse options for millennials. Check it out!