Where are young people buying? Realtor.com conducted a study of their online traffic by age group to see which generation was buying where, and found that millennials, between the ages of 25 and 34, prefer the urban centers, while older groups seem to be moving out.
By city, Salt Lake City, Utah is the most popular city to move to for 25 to 34-year-olds, due, in part, to its strong housing market. Realtor.com expects home prices and sales in Salt Lake City's to reach 4.5 percent and 4.6 percent growth, respectively, over the next one year.
In addition, the study found that Salt Lake City attracts younger buyers such as millennials with new job opportunities, with an expected 9 percent growth in GDP over the year, and employment growing at 3.6 percent year-over-year.
Realtor.com reports that in addition to Salt Lake City, many western and southern metros are leading the charge in home sales. Tulsa, Oklahoma; Little Rock, Arkansas; Dallas, Texas; and Charlotte, North Carolina are expected to increase their sales by 6 percent this year, beating the national average. With these strong markets, millennials are sure to follow. Realtor.com expects millennials to make up 43 percent of homebuyers by the end of 2018.
Other popular areas for 25 to 34-year-olds include Grand Rapids, Wyoming; Columbus, Ohio; Cincinnati, Ohio, Kentucky, Indiana, Omaha-Council Bluffs, New England, Iowa. Top areas for 35-44 year olds in addition to Salt Lake City include Minneapolis-St. Paul-Bloomington, in Minessota, Wisconsin; New Orleans-Metairie, Louisiana; Austin-Round Rock, Texas; and Raleigh, North Carolina.
By contrast, older age groups are moving to the suburbs. According to Archana Pradhan, Senior Professional Economist for CoreLogic, Generation X homebuyers accounted for potential homebuyers in suburban jurisdictions of Maryland and Virginia. The 55+ group preferred cities such as Albuquerque and Tucson. Other popular cities include Pittsburgh, PA, Knoxville, TN, Richmond, VA.