Charlotte ranks in top 10 U.S. cities for millennials to buy homes, report shows
It’s not a competition, but in a ranking of top metros across the United States for millennial home buying, Charlotte makes the Top 10.
(Of course it’s a competition, and the Gen Xer homebuyers choosing Raleigh just don’t know what they are doing, clearly!)
All jokes aside (nothing but love for our neighboring city), a study released by Knock on Jan. 20 breaks down the top spots for home purchasing, by generation, out of 100 largest metros in the country. The report ranks top cities based on:
- affordability
- availability of housing stock
- qualities that home buyers will be looking for at different stages of life.
This ranking takes into account the company’s housing forecast for 2022, which expects:
- The national median price to grow 8% to $399,484 year-over year
- Homes to sell in 20 days on average (in 2021, the average was 22 days)
- Months of supply to fall 11 percent to 2.1 (a balanced market contains 4-5 months of supply on average).
Here’s what the report shows, by generation:
Millennials
Home buyers ages 25-40 (in 2021)
The Top 10 millennial markets have a few things in common, when compared to the nation’s 100 largest metros:
- 11 percent more affordable than the median home in the U.S.
- 19 percent more homes for sale
- Millennial population makes up 20-25 percent
- 1.17x the national average of jobs in tech, finance and health.
Here are the cities that made the cut, ranked in order:
- Austin, Texas
- Des Moines, Iowa
- Charleston, S.C.
- San Antonio
- Atlanta
- Providence, R.I.
- St. Louis
- Winston-Salem
- Charlotte
- Spokane, Wash.
Why Charlotte?
Charlotte, coming in at No. 9, was lauded for its growth in the millennial population — six times the rate of millennials are moving here, when compared with the average U.S. city. Charlotte was cited for its:
Business and financial hub
University town
Strong job market
Higher than average employment in tech and finance (With big companies named, including Bank of America, Lowe’s and Honeywell)
Good weather
Quality of life
Sports: NFL’s Carolina Panthers, the NBA’s Charlotte Hornets and the NASCAR Hall of Fame
Dynamic culinary scene
Historical architecture
Parks and museums
Charlotte’s 2022 housing forecast:
- Median Sale Price: $378,330
- Median Sale Price Change: 11%
- Months of Supply: 1.8
And Knock, which is a company formed by Trulia’s founders in 2015, isn’t the only one singing Charlotte’s praises. A homebuyer.com report in December ranked Charlotte as No. 5 for millennials. A year ago, Lending Tree analyzed mortgage purchase requests for millennials in the U.S. and ranked Charlotte as the No. 32 most popular metro.
That’s not to say that it’s cheap for everyone to live in Charlotte. Rent in Charlotte continues to rise, reports Charlotte Observer’s Lauren Lindstrom. Charlotte residents would need to make at least $40,400 salary in order to afford an average one-bedroom home or apartment, according to a report published in July. For someone making the minimum wage of $7.25, they would need to work 107 hours to afford the average apartment here.
Here are the cities chosen for other generations:
Generation X
Home buyers ages 41-56 (in 2021)
Here are a few things the top cities that appeal to Gen Xers have in common:
- Pricier, but still with relative affordability (17 percent more expensive than the median)
- Larger homes: 150 more square feet than the national average
- Available inventory
- Larger than average amount of good school systems
- Green space
- Family-friendly activities
- Good career opportunities (1.2x more managerial positions than national average) and a diverse employer base
Here are the cities that made the cut, ranked in order:
Miami
Austin, Texas
Knoxville, Tenn.
Portland, Ore.
Boise, Idaho
Omaha, Neb.
Raleigh (who?)
Phoenix
Salt Lake City
Boston
Baby Boomers
Home buyers ages 57-76 (in 2021)
Here are a few things the top cities that appeal to Gen Xers have in common:
- Affordability and tax-friendly advantages for the country’s record number of retirees since the start of the pandemic (75% less in sales, property and inheritance taxes than national average)
- Good healthcare (35% more primary care physicians per 100,000 residents than nation’s average)
- Strong, diverse economies with part-time work
- Cultural and recreational activities (active adult communities)
- Continuing education opportunities (college towns)
Here are the cities that made the cut, ranked in order:
Pittsburgh
Lansing, Mich.
Knoxville, Tenn.
New Orleans
Birmingham, Ala.
Augusta, Ga.
Greenville, S.C.
Palm Bay, Fla
Jacksonville, Fla.
Tucson, Ariz.
This story was originally published January 20, 2022 at 6:00 AM.
