Construction Coverage Analysis: Millennials’ Home Buying Share Varies by State

(Image courtesy of Construction Coverage)

Construction Coverage, San Diego, released a study finding that millennials accounted for the largest share of home purchases in the Northeast. Topping the list was Massachusetts, where they accounted for 64.2% of home purchase loans in 2023.

Following Massachusetts were New York (63.8%), New Jersey (63.3%), Connecticut (62.8%), Illinois (62.5%), Minnesota (62.2%), Alaska (62.1%), Pennsylvania (61.8%), Nebraska (61.4%) and California (61%).

The states with the smallest share of millennial homebuyers were Delaware (40.6%), Florida (44.6%), South Carolina (45.7%), Arizona (46.1%), Nevada (48.1%), Hawaii (50%); Mississippi (50.5%), Alabama (50.5%), New Mexico (50.8%) and Maine (52.3%).

Construction Coverage also noted that amid current conditions, there are other distinct characteristics of millennial home buyers. For example, the cohort is taking out larger home loans compared with other generations.

In 2022, the median loan amount for mortgages taken out by applicants ages 25-34 was $315,000 and for those ages 35-44 it was $365,000. That was higher than any other age group.

The loan-to-value ratio was 87% for those ages 25-34, and 80% for those ages 35-44.

Construction Coverage relied on a number of data sources, including the National Association of Realtors, Freddie Mac and the Home Mortgage Disclosure Act, for its analysis.