Bay Area city makes list of hottest cities for millennials looking to buy homes


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    Tract homes fill the streets of Palmdale, Calif., one of nation’s leading cities for millennial homeownership. Here are the top 10, according to Smart Asset’s new study of census data.

    Tract homes fill the streets of Palmdale, Calif., one of nation’s leading cities for millennial homeownership. Here are the top 10, according to Smart Asset’s new study of census data.


    Photo: VisionsofAmerica/Joe Sohm/Getty Images

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Tract homes fill the streets of Palmdale, Calif., one of nation’s leading cities for millennial homeownership. Here are the top 10, according to Smart Asset’s new study of census data.

Tract homes fill the streets of Palmdale, Calif., one of nation’s leading cities for millennial homeownership. Here are the top 10, according to Smart Asset’s new study of census data.



Photo: VisionsofAmerica/Joe Sohm/Getty Images


Most millennials rent — only one in three owns their own home in America compared to a nearly 65 percent home ownership rate across all ages— but in some cities, 18- to 34-year-olds are bucking the national trend.

A real estate data study of Census Bureau data from 2018 compared 200 of the largest U.S. cities and ranked them based on two metrics: the current rate of millennial homeownership and the 10-year change in under-35 homeownership rate.

The SmartAsset study found that millennial homeownership rates are higher in the West, with suburban Phoenix metros claiming the top two places.

You might think the Bay Area’s exorbitant real estate prices would scare away homesteading millennials, and that was largely the case. But there was one exception: Hayward made the top 10, coming in last place. Despite a median home value of $638,000, millennial ownership has jumped 4.10 percent since 2009.


ALSO: Tear down that wall: Bay Area millennials want homes with open floor plans

Other takeaways from the study:

—In 2009, 63 percent of residents aged 18 to 34 owned their own homes in Elk Grove, Calif., one of the highest rates in the nation.

But the rate fell about 4.5 percent over the next 10 years, pushing it down to 42th in SmartAsset’s ranking. Still, the Sacramento suburb’s 58.8 percent millennial homeownership rate remains one the highest in the country, trailing overall leader Peoria, Ariz., by less than two percentage points.

—Palmdale, Calif., is on a hot streak. Palmdale, which tied for No. 4 in SmartAsset’s ranking, saw a 10 percent increase since 2009, the highest in the study. Its current millennial homeownership rate of 45.7 percent puts it in  the top 10 percent of all U.S. cities.

—Cape Coral, Fla., on the Gulf Coast was the only city east of the Mississippi River to make SmartAsset’s list. Millennials had a 2018 homeownership rate of 55.81 percent, fourth-highest in the study.

—The nearest city to the Bay Area (that’s not in the Bay Area) ranked in SmartAsset’s top 25 was Modesto at No. 19. It’s seen a modest increase in millennial homeownership from 32.9 percent to 34.2 percent over 10 years.

—Overall, millennial homeownership is declining nationally. The rate dropped by roughly 3 percent from about 36.5 percent in 2009 to about 33.7 percent in 2018.


More about the study and its methodology can be found here.

Mike Moffitt is an SFGATE Digital Reporter. Email: moffitt@sfgate.com. Twitter: @Mike_at_SFGate

Article source: https://www.sfgate.com/realestate/article/Millennials-homeownership-hottest-cities-14981962.php

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