Where 20-Somethings Actually Buy Homes: The 10 Hottest Cities for Young Millennials
1. Evansville, IN
Median list price: $155,000
Percentage of mortgages issued to buyers aged 20 to 29**: 33.2%
This Midwestern river town is striving to become a place where young folks want to live and hang out on the weekends. The city purchased a private lot downtown with plans to turn it into a park, music venue, and maybe even an ice rink. Events like the Evansville Food Truck Festival, in its third year, and the buzzy Evansville Donut Festival are stemming the flow of 20-somethings to Louisville, two hours east, and Indianapolis, about three hours northeast.
Baked treats aside, the biggest draw here is affordability. Median-priced homes cost about $100,000 less than in those bigger metros.
“These younger buyers are realizing they can get homes they actually own and spend less on a mortgage than they would on rent,” says local real estate agent Trae Dauby of Keller Williams Capital Realty. “Most are locals who were born and raised in the area.”
The city doesn’t have a lot of new condo developments, so many buyers in their 20s are grabbing 100-year-old, single-family homes that need work. The hottest spot for these buyers is just west of downtown along the Ohio River in the 47712 ZIP code. They can score four-bedroom beauties for about $130,000 in neighborhoods such as Poplar Grove and Bunny Grove within the ZIP. About half of those taking out mortgages in this area were under 30.