10 Hottest Cities For Millennial New-Home Buyers

Most people in the 18-to-34 age bracket spend the bulk of their time trying to get their foot in the door at work and in life. However, a lucky few have managed to put their foot in the door of their very own home.

While saving for a down payment and making mortgage payments may seem out of reach for many Millennials, a recent Builder Online study cited demographic data to show that twenty-somethings are purchasing new homes. The site analyzed home sales from 2012 and 2013 to pinpoint the cities with the largest year-over-year increase in new-home sales among Millennials.

Popular vacation destination Honolulu topped Builder’s list, and while the cost of living in Hawaii is steep, there are other factors to consider when it comes to popular Millennial new-home buyers markets.

“Honolulu was ranked highly by Builder due to growth in new home sales among the 50 largest new-home markets for millennials, meaning that Honolulu has a big base of demand, and it’s growing,” said Jonathan Smoke, Chief Economist for realtor.com®. “That may surprise some because of the high cost of living, but it isn’t always about the lowest cost places to own a home.”

“Markets can be attractive for many reasons to Millennials—and this list screams variety,” Smoke added. “In some places, it’s affordability, but in others it’s jobs, and for Honolulu, I would expect it’s about a lifestyle that appeals to today’s 20-somethings. Be careful in making assumptions that millennials are all challenged by income—some of the fastest-growing companies in the world are headed by Millennials.”

1. Honolulu, HI

2. Birmingham, AL

3. Palm Bay, FL

4. Daphne, AL

5. Madison, WI

6. Sacramento, CA

7. Fort Collins, CO

8. Stockton, CA

9. Cape Coral, FL

10. Spokane, WA