Millennials Lead Mortgage Applications—Including in the Nation’s Top-Priced Metro

Aspiring millennial homebuyers dominated in 2024, filing nearly half of all mortgage applications across the nation’s top 50 metros—especially in some of the most expensive markets. 

House hunters aged 28 to 43 accounted for 49.7% of home loan requests received by LendingTree last year, down 5% from a year ago. (Millennials, born between 1981 and 1996, were ages 28 to 43 in 2024.)

Despite the slight dip, possibly attributed in part to an uptick in Gen Z buyers, millennials have solidified their status as the driving force in the housing market, according to the latest data analysis released by the online marketplace.  

"Millennials are in their prime household-formation years, often marrying, having kids, and seeking stability through homeownership," explains Realtor.com® senior economic research analyst Hannah Jones. "They’ve had time to build credit, savings, and careers, giving them better access to mortgages than younger cohorts like Gen Z."

As part of the study, LendingTree researchers parsed through about 140,000 mortgage inquiries in the 50 largest markets between Jan. 1 and Dec. 31, 2024.

Data revealed that would-be buyers in their 30s and early 40s sought the most mortgages in the staggeringly expensive San Jose, CA, making up 62.6% of applications. The average age among the applicants was 35.

Seattle had the second-largest share of millennial mortgage seekers, at 57.1%, followed by San Francisco, with 56.9%. Meanwhile, Austin, TX, New York City, and Boston all tied for third place, with 55.3%. 

Notably, the three West Coast metros at the top of the ranking are at the core of the U.S. tech industry, homes to giants such as Apple, Google, and Microsoft offering some of the nation’s highest average salaries.

Steven Glick, director of mortgage sales at HomeAbroad, explains that millennials tend to balance career access with lifestyle and top-notch schools for their children—factors abundant in both the Bay Area and Seattle.

"That’s why you see outsized millennial activity in tech hubs where incomes can support high prices, even if costs are steep," Glick tells Realtor.com.  

Both Glick and Jones agree that, unlike the more mobile millennials, older homeowners, like Gen X and baby boomers, are more "locked in" with low mortgage rates and are less likely to move, except for some major life events.

"As a result, millennials represent the most active and financially positioned segment of buyers right now," notes Jones.

Tech hubs command the highest down payments

Perhaps unsurprisingly, the same trio of tech-oriented markets—though in a slightly different order—also saw the highest average down payments on homes among aspiring millennial buyers. San Jose topped the list with $212,901—more than 2.5 times the average across the 50 metros.

San Francisco was not too far behind, with a $190,342 down payment, followed by Seattle, with $146,948.

Compare that to Virginia Beach, VA, where the average down payment among millennial loan applicants was just $43,582—the lowest of the 50 biggest metros.

West Coast metros—including the Bay Area powerhouses—also topped the list for average mortgage amounts requested by millennials.

Potential buyers in San Jose sought the highest average loan amount, at $793,636. In San Francisco, the average mortgage requested was $735,780; in Los Angeles, it was $634,215. 

These figures reflect the current housing market in the pricey California metros.

In August, San Jose had the highest median list price among the top 50 metros, reaching $1,378,000, according to the latest available monthly housing market trends report from Realtor.com. 

Los Angeles clinched the No. 2 spot with the median price of $1.1 million, and San Francisco came in third, with a $959,000 price tag. 

"High-paying tech and finance jobs in these regions are heavily populated by millennials, giving them the income needed to qualify for large loans," says Jones. "Many already live there as renters and want to put down roots, despite the steep entry costs. Limited supply and rising rents further push millennials to act, making them the most dominant buyers even in the nation’s priciest metros."

Meanwhile, Seattle’s housing market was a bit more affordable, with the August median list price registering at $774,950.  

On the other side of the spectrum, Buffalo, NY, known for its budget-friendly housing—as well as its brutally cold winters—saw the lowest average loan inquiry, at $260,511.

What's behind the 5% dip?

The share of millennial borrowers applying for home loans dropped from 52.3% in 2023 to 49.7% in 2024, raising the question: Why?

Glick, with HomeAbroad, says there is a combination of factors behind this trend, beginning with diminishing affordability.

"Prices kept climbing. National home prices hit new highs through 2024–25, so some would-be buyers paused to save more," he says.

At the same time, interest rates were on an upward trajectory, prompting some millennials to adopt a "wait-and-see" strategy, rather than getting stuck making higher monthly mortgage payments.

And then there is what Glick calls the "Gen Z entering the funnel."  

"As the oldest Gen Z hit their late 20s, they started appearing in the application mix, diluting millennials’ share," explains the mortgage expert. However, the younger buyers put a premium on affordability and gravitate more toward starter markets.