The National Association of Realtors (NAR) has released a new report detailing the most popular areas for millennials to live.
Job market and affordability in a given location are two of the main reasons that impact millennials the most, according to the report, which analyzed population trends, income levels and housing conditions in the largest 100 metropolitan statistical areas across the country.
NAR found that Madison, Wis., is one of the top destinations for millennials. Seventy-five percent of recent movers to the city have been millennials. Additionally, this segment of the population has mostly elected to remain in the area.
Madison has many attributes that appeal to millennials, including earning potential. As of 2017, the median income for millennials there was $62,000, and $68,500 for millennials who recently had moved to the city, Lawrence Yun, NAR's chief economist, said in a news release.
“In comparison to other areas, Madison offers one of the highest wages for millennials,” Yun said. “Moreover, this income level combined with the robust employment opportunities and the affordability, make Madison among one of the most appealing locations for millennials who are looking to stay longer and raise families.”
Bakersfield, Calif. – located between San Francisco and Los Angeles – was another popular home buying destination for millennials. Twenty-eight percent of the city’s population are millennials, and 67 percent of recent movers to Bakersfield also are in that age group.
Yun has called for more West Coast housing and construction. He says Bakersfield’s affordable homes makes it inviting to millennials. Of the millennials who most recently moved there, they can afford to purchase nearly 15 percent of the homes listed for sale. This is in comparison to neighboring Los Angeles, where millennials can only afford to buy 4 percent of listed homes.
NAR research revealed that Oklahoma City, Okla., is attractive to millennials looking to purchase a home or who are already in a home. Twenty-nine percent of the city’s residents are millennials, while 61 percent of those who recently moved there are millennials.
During the time of the survey, of the properties on the market in Oklahoma City, millennials were in position to afford 30 percent of those homes. The unemployment rate is less than 3 percent, and the city experienced the third-highest increase in wages among the 100 largest metro areas.