Where Millennials Are Finding Homeownership Success in 2024

Written by David Dodge

Owning a home has always been part of the American dream. But for millennials, it hasn’t been the smoothest journey. The Great Recession hit right as many were gearing up to buy their first homes, forcing them to put that dream on hold.

Fast forward a few years, and there was a glimmer of hope. Mortgage rates dropped to around 5%, making it a bit easier for millennials to catch up on their homeownership goals. But then, COVID-19 came along, and with it, the cost of everything—including homes—skyrocketed. For a lot of millennials, homeownership still feels just out of reach.

Here’s the good news: if you’re a millennial and haven’t bought your first home yet, you’re not behind. Many in your generation are still navigating the ups and downs of today’s housing market, and there’s no set timeline for when you need to cross that milestone

Generational Homeownership: Who's Owning Homes?

Let’s take a look at how homeownership plays out across the generations:

• Baby boomers (born 1946–1964) are leading the pack, with 74% of them owning homes. They’ve had the longest time to build wealth and, if they haven’t retired yet, many are still earning top-dollar in senior-level positions.

• The Silent Generation (born 1928–1945) also has a solid 70% homeownership rate. They’ve been owning homes since long before we started keeping detailed data. But as this group ages, we’re starting to see more of them downsize or move into senior housing.

• Generation X (born 1965–1980) hit their 50% homeownership mark just before the 2008 financial crash. Even though they were hit hard, a lot of Gen Xers managed to keep their homes, and today, 65% of them are homeowners.

• Millennials (born 1981–1996) are on the rise. In 2023, 45% of millennials own homes, and that number is steadily climbing. Despite high prices and fierce competition, millennials are pushing forward and determined to achieve homeownership.

• Generation Z (born 1997–2012) is just starting to make their mark on the housing market, with 8% already owning homes—impressive for such a young group!

Homeownership Rates by Generation

Data source: Apartmentlist.com

Where Are Millennials Finding Success?

So, where are millennials actually buying homes? According to ApartmentList.com, it turns out that smaller cities and non-metro areas are where they’re having the most luck.

Millennials are doing best in non-metro areas, with 50% of them owning homes in these quieter regions. In cities with populations under one million, the ownership rate is 44%—pretty close to the national average.

But once we move to bigger cities, the numbers start to drop. In cities with populations between one and five million, only 41% of millennials are homeowners. In the biggest cities—those with more than five million people—that number dips even lower to just 33%.

Interestingly, the Midwest has been a sweet spot for millennial buyers. Cities like Minneapolis, Cincinnati, Indianapolis, and St. Louis are seeing homeownership rates of 50% or higher among millennials. These cities offer more affordable options and a higher quality of life without the sky-high prices of the coasts.

Home-Buying Tips for Every Generation

Whether you’re a millennial looking to buy your first home or part of a different generation trying to navigate today’s housing market, these tips can help:

1. Get Pre-Approved Before You Start Shopping
   Some housing markets are still super competitive, and you don’t want to miss out on your dream home because you weren’t ready. Getting pre-approved for a mortgage means you’ll have the paperwork in hand to make a serious offer as soon as you find a place you love. Talk to a few lenders to get the best deal before you start shopping.

2. Budget for More Than Just the Down Payment
   Buying a house isn’t cheap. Even if you’re getting a loan, you’ll need to save up for more than just the down payment. Expect to pay closing costs, inspection fees, and moving expenses on top of everything else. And if you're not using a first-time homebuyer program, you’ll likely need around 3.5% of the sale price upfront. Talk to your lender about the total costs you’ll face.

3. Don’t Expect to Find a Home Overnight
   House hunting takes time, and the perfect home may not show up right away. Be patient and keep your goals in mind. Start by looking at listings in your price range, but don’t fall in love with any homes before you’ve been pre-approved. The search process can take weeks or even months, so pace yourself.

Stay Committed to Your Journey into Homeownership

Whichever generation one finds themselves in, the challenges presented today seem to make owning a home an impossible feat. Whatever your generation may be, it is still achievable with persistence and some smart planning. Whether you are starting out in your millennials or quite older in another generation, now is the time to make the next move; the key is remaining focused, prepared, and patient.

Just remember that with every step forward, the closer it gets. It may take a little longer, but home ownership brings stability, and it helps in laying the foundation for building a long-term wealth asset. Keep pushing; your dream just might turn into reality. The journey may be long, but boy, are the rewards worth it. Stay focused and know your efforts will pay off.