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By Giulia Carbonaro
Senior Reporter
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A majority of new mortgages taken out last year went to young people under the age of 35 (39.7 percent) and between the ages of 35 and 44 (26.5 percent), according to a recent study by Redfin, as millennials and Gen Zers reach homebuying age and manage to save enough money for down payments.
Read more: How Much House Can You Afford?
The unaffordability of the housing market in recent years has pushed forward the average age of first-time homebuyers, from 33 in 2021 to 36 in 2022, according to the National Association of Realtors (NAR)—an all-time high. This affects mainly one generation: millennials, those born between 1981 and 1996.
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Especially in some of the most expensive markets in the country, millennials have had to wait longer to be able to qualify for a mortgage and save enough money for buying their first home, and they're now making up for lost time.
According to a Redfin analysis of Home Mortgage Disclosure Act (HMDA) data covering purchases of primary homes, roughly two in five new mortgages in California's Bay Area went to older millennials (which falls under the 35-44 category in the real estate platform's report)—the highest share of any major metropolitan area.
Read more: How to Buy a House With Bad Credit
In San Francisco, 37.8 percent of new mortgages issued last year went to older millennials aged between 35 and 44. In Oakland, 37.2 percent of mortgages issued last year went to this group; in San Jose, 37.1 percent.
In the top 10 metropolitan areas with the biggest share of mortgages taken out by older millennials there are also Los Angeles, California (34.5 percent) and Newark, New Jersey (34.5 percent); New York, New York (33.7 percent); Anaheim, California (33.2 percent); San Diego, California (31.8 percent); Dallas, Texas (31.7 percent); and Nassau County, New York (31.6 percent).
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The metropolitan areas with the lowest share of mortgages taken out by older millennials were Cleveland, Ohio (23.4 percent); Detroit, Michigan (23.4 percent); Cincinnati, Ohio (23.7 percent); Phoenix, Arizona (23.8 percent); Warren, Michigan (23.9 percent); Indianapolis, Indiana (24.9 percent); Milwaukee, Wisconsin (25.5 percent); Las Vegas, Nevada (25.7 percent); and Jacksonville, Florida (25.8 percent).
Read more: Compare the Best Mortgages for First-Time Homebuyers
According to Redfin, these cities had such low shares of millennials taking out mortgages because they've already likely to have purchased their first home there, as these are relatively more affordable markets compared to the Bay Area.
Are you a millennial who got a mortgage last year to buy your first home? Contact g.carbonaro@newsweek.com to share your experience.
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