Why do millennials choose to move to certain areas? Job market and affordability are two of the main reasons, according to the National Association of REALTORS® 2019 report, “Most popular areas for millennials: where they move and stay.” The report analyzed employment gains, population trends, income levels and housing conditions in the largest 100 metropolitan areas to identify the most popular areas for millennials.
The report found that Madison, Wisconsin, is one of the top destinations for millennials—75% of recent movers to the city have been millennials and they generally remain in the area. Lawrence Yun, NAR’s chief economist, explains, “In comparison to other areas, Madison offers one of the highest wages for millennials. 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.”
California is also a popular homebuying destination for millennials, especially Bakersfield, located between San Francisco and Los Angeles, because it is one of the most affordable metro areas in the state. Yun says Bakersfield’s affordable homes make it inviting to millennials, who can afford to purchase nearly 15% of the homes listed for sale, compared to neighboring Los Angeles, where they can only afford to buy 4% of listed homes.
Millennials tend to reside and move to locations and cities where employment is strong. The median income for millennials who recently moved in the 100 largest metro areas was $53,000. Millennials who moved recently in these areas can afford to purchase nearly 1 out of 4 of the homes currently listed for sale (23%).
