As people move through life stages, their housing needs change. Broadly speaking, young adults want an alternative to rising apartment rents, middle-aged parents want to live near top schools, and seniors want active retirement communities, the researchers found.
What are the most attractive cities for each generation?
Hita fintech homeownership platform, has released its top picks in the housing market by generation based on affordability, availability, and amenities important to each group.
Among the 100 largest metropolitan areas in the country studied, Knock found that Austin ranks No. 1 for millennials (born 1981 and 1996), Miami rises to the top for Generation X (born 1965 to 1980) and Pittsburgh is the best market for baby boomers. (born from 1946 to 1964).
“The good news is that the rise of remote work has given many people the freedom to rethink where they want to live,” Knock co-founder and CEO Sean Black said in a statement.
The purchase price of residential property in the Portland area has jumped 15% from 2020 to 2021, and Knock projects a further 9% increase this year, to a median price of $540,878.
Rising prices in the Portland area are fueled by pent-up demand and a low supply of homes for sale. Well-priced residential properties can receive an offer within a week of listing, according to reports from the Regional Multiple Listing Service (RMLS).
But Portland continues to be a destination for some people looking to escape the high cost of living in California and Seattle, said Knock research analyst Alexandra Quintana.
In Knock’s study, the Portland-area housing market ranks differently depending on the age of the buyer:
Portland ranks 16th for millennials in To hit to study.
As members of the nation’s largest generation of living adults, millennials are feeling the pressure of soaring rents and seeing the benefit of locking in a low price, fixed rate mortgage.
First-time home buyers can’t make a conditional offer based on the sale of their existing home, and they need a down payment—often 20% of the sale price—to qualify for a traditional mortgage .
If they have funds for a down payment, an unconditional offer is attractive to sellers. But without a property to trade, they might need around $100,000, which was the typical down payment for the Portland-area median selling price of just under $500,000 last year, according to domestic lender Knock.
Some first time home buyers withdraw stocks, bonds, and mutual fund accounts or receive an advance from an inheritance or funds from relatives.
“More inheritances are offered early for families to buy a bigger house,” said Lynda O’Neill, a broker with Exceptional Homes by John L. Scott Lake Oswego. “Parents are helping their adult children get a bigger house or one with a bedroom and living space, an ADU, to accommodate multiple generations living together.”
According to the Knock study, the best cities for millennials offer affordable prices, strong labor markets and vibrant downtowns.
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, according to the study.
Portland is a ‘less friendly’ housing market for millennials than Austin, Texas, where there’s a 2.6-month supply of homes for sale and listings stay on the market for nearly a month, said Knock’s Quintana, which offers down payment loans .
An example: A new house of 2,110 square feet in 6113 Dumfries Lane in Austin is listed at $519,000, which is close to Knock’s predicted 2022 median sale price for the city.
To hit The top 10 millennial markets are innovation hubs with strong tech, finance and healthcare industries, as well as a culinary scene, nightlife, sports teams and outdoor activities . Here are the cities, in order of ranking:
- Austin, Texas (median predicted sale price for 2022 is $519,005)
- Des Moines, Iowa ($267,060)
- Charleston, South Carolina ($368,613)
- San Antonio ($326,994)
- Atlanta ($372,457)
- Providence, Rhode Island ($408,190)
- St. Louis ($236,620)
- Winston-Salem, North Carolina ($249,840)
- Charlotte, North Carolina ($378,330)
- Spokane, Washington ($426,584)
Knock also found that in these metros, millennials make up an average of 20-25% of the population. These cities 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 tech, finance, and finance. and health.
Portland ranks fourth for Gen X in To hit to study.
Gen Xers are in their prime and, statistically, are the most likely to have school-aged children. They seek career opportunities, family-friendly communities, top schools, and cultural and sporting events.
According to Knock, in 2021, the median home in the top Gen X markets was 17% more expensive than the US median priced home, but was relatively affordable compared to New York, San Francisco and Seattle.
An example: A two-story house with four bedrooms, three bathrooms and 1,702 square feet of living space at 14735 SW 90th Terrace in Miami is on sale for $440,000, which is close to the median selling price in town.
To hit The top 10 markets for Gen X offer homes with 150 square feet more and 1.2 times more leadership positions than the national average. In order of ranking, these are:
- Miami (2022 median predicted sale price is $441,093)
- Austin ($519,005)
- Knoxville, TN ($317,953)
- Portland, Oregon ($540,878)
- Boise, Idaho ($521,259)
- Omaha, Nebraska ($267,767)
- Raleigh, North Carolina ($424,684)
- Phoenix, Arizona ($469,542)
- Salt Lake City ($526,447)
- Boston ($637,344)
Portland ranks 47th for baby boomers in To hit to study.
Traditionally, retirees cash in on their homes in the suburbs to live more carefree in active retirement communities with good health care and in states with lower costs of living and favorable tax benefits that allow retirees to stretch their fixed income more.
Americans 60+ are more active in the market than a decade ago, crowding out younger homebuyers Research bench.
Where are the baby boomers going?
Eight of the top 10 baby boomer markets in To hit The list is located in warm climate regions and nine are college towns, which provide baby boomers with opportunities for lifelong learning, activity and socialization.
Knock also found that, on average, residents of these major cities pay 75% less in sales, property and estate taxes than the national average. These cities 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.
An example: A brick duplex at 1505 Cumberland St. in the Pittsburgh Metro is on sale at $220,000.
In order of ranking, To hit the best markets for baby boomers are:
- Pittsburgh (2022 median predicted sale price is $222,491)
- Lansing, Michigan ($187,095)
- Knoxville, TN ($317,953)
- New Orleans ($276,931)
- Birmingham, Alabama ($273,281)
- Augusta, Georgia ($256,533)
- Greenville, South Carolina ($301,455)
- Palm Bay, Florida ($336,754)
- Jacksonville, Florida ($351,900)
- Tucson, Arizona ($350,503)
Why is Portland so low, at #47, on the baby boomer list? For this generation, who are traditionally shrinking shoppers, the Portland Metro’s projected median selling price is $150,000 above the national average, offering lower savings to those looking to capitalize on the current selling price of their home for savings they can use in the future, said Quintana research analyst Knock.
— Janet Eastman | 503-294-4072
Learn about the Portland and Oregon real estate market:
• Portland’s biggest real estate bidding wars of 2021: Homes sold for up to $605,000 above asking price
• Portland-area housing market has frustrated buyers with skyrocketing prices, few options in 2021
• Oregon’s most popular homes for sale in 2021: Oddball oceanfront, over-the-top mansion teardowns were the most-viewed real estate listings this year
• Analysis finds landowners in Portland’s most diverse and gentrified areas hit hardest by code violation fines
• New Millennial Homebuyers Face Cash-Rich Baby Boomers: ‘Hold On’