Monday Market Update: The Correlation Between High-Tech & Home Ownership
High-tech jobs & homebuying: a quick (and just in!) data drop
A Silicon Valley city is once again in the national news, and this time as a prime example of how high-tech employment opportunities drive millennial home ownership. You can find the complete article on Mortgage News Daily here and find the hand-chosen highlights from our team below.
MILLENNIAL HOMEBUYING DATA DROP
| Millennials have accounted for the largest share of home purchase mortgage applications since 2016 and accounted for 51 percent so far this year
| Younger millennials are generally in the FTHB market, whole older members of the generation are often move-up buyers
| San Jose had the highest percentage of Millennials applying for a mortgage at 64%, followed by Austin, Seattle, Pittsburgh, Boston, and San Francisco – all with millennials accounting for at least 60% of purchase applications
| Miami, Las Vegas, Orlando, Tampa, Phoenix, and Jacksonville had the lowest percentage of millennial homebuyers among metro areas, all with a 45% share or less
| Among metro areas with high numbers of millennial homebuyers, communities with high-tech opportunities are increasing their share of purchases more rapidly than areas with affordability as a magnet
| Areas with high-tech employment also seem to have millennial homebuyers
with the highest average credit scores, highest average income & biggest down payments
| There is also a relative increase in the share of millennial homebuyers where there are declining ratios of older generation homebuyers
The Bottom Line: CoreLogic Economist Archana Pradhan summarizes that, “Despite affordability challenges for many potential millennial homebuyers, especially in the high-cost market, millennials with high-tech skills whose compensation is commensurate with local living costs can buy homes.”
If you have any questions about how these trends impact your own buy and sell opportunities in our high tech market and micro markets within, please do not hesitate to reach out!
Bobbi Decker
DRE#00607999
Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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