The 10 most popular housing markets for millennials in 2023

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The mortgage market may be struggling, but originators can count on a steady stream of millennial demand for homes.

The demographic of adults born between 1981 to 1996, or those ages 27 to 42, make up 53% of all mortgage requests, a rate almost double that of Generation X ahead of them, according to LendingTree. Millennials also make up the majority of borrowers in 37 of the nation's largest metropolitan areas, the firm found. 

"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," wrote Jacob Channel, senior economist at LendingTree.

Millennials have led all demographics in mortgage demand for several years and are likely to hold their position for a while as Generation Z, or those born after 1997. slowly catches up in homebuying activity. The group is also attracted to vibrant markets with strong job opportunities and equity growth potential, and appears more mobile than their predecessors who plan to age in place.

LendingTree ranked the most popular markets for Millennial homebuyers, analyzing data of mortgages offered to the demographic in 2022 and tallying their average credit scores and downpayments. The adults preferred pricey but popular coastal metros, while accounting for smaller mortgage shares in landlocked pandemic-era hotspots like Las Vegas and Phoenix.

National Mortgage News also gathered the top home loan originators in each market, analyzing S&P Global single-family residential mortgage data available between Jan. 1, 2022 and Oct. 31, 2022.