Knock, a digital homeownership platform, today released its ranking of the best housing markets by generation in 2022. Austin, Texas, ranks No. 1 for millennials, while Miami is the cheaper for Gen X and Pittsburgh tops the list for baby boomers. Austin and Knoxville, Tennessee are the only metros to make two lists.
Sean Black, co-founder and CEO of Knock, said: “While we expect the housing market to moderate in 2022, homebuyers will continue to face many of the same challenges as the year. last. Rising interest rates will offset any relief buyers will get from slowing house price growth.
He added: “The good news is that the rise of remote working has given many people the freedom to rethink where they want to live, opening up options for those who want to explore new cities that offer relatively affordable, growing economies and access to amenities important to them.”
To compile the list of top markets, Knock ranked the 100 largest metropolitan areas in the country based on affordability, availability of housing stock, and key attributes important at each stage of life.
The analysis takes into account Knock’s 2022 housing forecast, which projects the national median sale price will increase 8% to $399,484 year-over-year, homes for sale an average of 20 days from 22 in 2021 and months of supply to fall 11% to 2.1, well below the four to five month average in a balanced market.
With six of the top 10 millennial markets in the South and two each in North Carolina and Texas, the top 10 millennial markets in order of ranking are Austin, Texas; Des Moines, Iowa; Charleston, South Carolina; San Antonio; Atlanta; Providence, Rhode Island; Saint Louis; Winston-Salem, North Carolina; Charlotte, North Carolina; and Spokane, Washington.
More geographically diverse than the best markets for its younger and older counterparts, the top 10 markets for Gen Xers in order of ranking are Miami; Austin, TX; Knoxville, TN; Portland, Oregon; Boise, Idaho; Omaha; Raleigh, North Carolina; Phoenix; Salt Lake City and Boston.
While it’s no surprise that eight of the top 10 baby boomer markets are in hot climate regions, the fact that the top two are cold climate metros might be. The best markets for baby boomers in order of ranking are Pittsburgh; Lansing, Michigan; Knoxville, TN; New Orleans; Birmingham, Alabama; Augusta, Georgia; Greenville, South Carolina; Palm Bay, Florida; Jacksonville, Florida and Tucson, Arizona.
The best Millennial markets offer affordable prices, strong labor markets and vibrant city centres. The largest contingent of homebuyers, millennials span 15 years, with the youngest turning 25 and the oldest turning 40 in 2021.
Migration trends show that as millennials grapple with affordability amid soaring house prices, many have spread their wings to smaller metros in a bid to access homeownership. Compared to the 100 largest cities, the top millennial markets in 2022 are 11% more affordable and have an average of 19% more homes for sale.
In these metropolises, Millennials represent on average 20 to 25% of the population. They also attract an average of 90% more incoming millennials year-over-year than the 100 largest metropolitan areas and have 1.17 times the national average concentration of jobs in technology, finance, and technology. of health.
Gen X markets offer career opportunities and family-friendly attributes at a cost. Aged 41 to 56, Gen Xers are statistically at the peak of their careers and the most likely to have school-aged children. The best markets for Gen Xers tend to be more expensive, but still offer a relatively affordable price, available inventory, space without sacrificing career opportunities, good schools, an abundance of green spaces and activities. family.
In 2021, the median home in the top Gen X markets was 17% more expensive than the median-priced home, but was relatively affordable compared to New York, San Francisco, and Seattle. Homes in these markets offer 150 square feet more than the national average. These markets offer a strong labor market with a diverse employer base, 1.2 times more leadership positions than the national average, and an above-average number of top-ranked school systems.
Major baby boomer markets are prime locations for those looking to change their lifestyle. Baby boomers, the generation born between 1946 and 1964, have been quitting in record numbers since the pandemic began, providing the freedom to cash in on the equity they’ve amassed in their homes.
The baby boomer markets on this year’s list offer retirees affordable, tax-friendly benefits that allow them to do more with their money, as well as access to good health care, strong and diversified economies. with opportunities for part-time employment, culture and recreational activities.
Nine of the 10 metros are college towns, providing opportunities for baby boomers to further their education. On average, residents pay 75% less in sales, property and estate taxes than the national average. They also have access to 35% more primary care physicians per 100,000 population than the nation’s 100 largest metropolises and thousands of active adult communities.