Nearly half of inquiries were made by millennials, although that share fell compared with last year
Millennials aged 28 to 43 made up nearly half (49.7%) of mortgage purchase inquiries in the US's 50 largest metros in 2024, according to a new LendingTree report – but while high, that share has fallen five percentage points from last year.
The online lending marketplace’s analysis of about 140,000 mortgage requests showed millennials still led applications in 16 major cities. In tech centers, millennials drove 62.6% of inquiries in San Jose, 57.1% in Seattle, and 56.9% in San Francisco.
In contrast, Louisville, Tampa, and Jacksonville posted the lowest shares of millennial mortgage shoppers, still substantial at 41.5%, 41.7%, and 42.4%, respectively. Louisville saw a sharp 12.3% drop in millennial share from 2023, while Tampa and Jacksonville also experienced above-average declines.
“Millennials in these metros are making good money and many are growing their families, leaving them in need of more space and pushing them to shop for new homes,” Matt Schulz, LendingTree’s chief consumer finance analyst, said.
“Residents of these metros also tend to have high credit scores, which, when combined with high incomes, means that you likely have a lot of options when getting a loan.”
Loan sizes and down payments reveal regional divides
Millennials in San Jose led the nation with an average down payment of $212,901—nearly five times higher than Virginia Beach’s $43,582.
“If you can make a big down payment, it can make a huge difference. Right off the bat, it can mean that you have a better chance of getting approved for the mortgage,” Schulz said.
“Still, a high down payment can create challenges. Money put toward a down payment is money that can’t go toward building an emergency fund, knocking down other types of debt, investing for retirement or working toward other long-term financial goals.”
Average loan amounts followed a similar pattern: San Jose, San Francisco, and Los Angeles topped the list with $793,636, $735,780, and $634,215, respectively. Meanwhile, Buffalo, Cleveland, and Oklahoma City saw the lowest average loan requests, all under $280,500.
“I am seeing millennial buyers being extremely cautious,” Mark Worthington, a branch manager at Churchill Mortgage, told Mortgage Professional America. “They ask a lot of questions and want to see information backed up with facts. They often want to start the process without a great deal of personal contact and work through electronic means of communication."
Generational shifts and affordability challenges
The slight decline in millennial market share may be attributed to the emergence of Gen Z buyers and the impact of higher interest rates. “Millennials who are already in a home may not want to move if they have a really low rate on their current home,” Schulz said. “Millennials who don’t have a home yet may not want to dive in because they’re biding their time waiting for rates to fall.”
Worthington noted that in addition to market challenges, millennials have monthly bills that previous generations did not have at the same age.
“Often the challenges center on affordability,” he said. “The millennial buyer has more ongoing monthly expenses than previous generations. Thirty years ago, most people didn’t have a cell phone, streaming services, delivery services and coffee shop memberships. All these eat into the affordability of housing.”
