BILL CLARKSON, CCIM Commercial & Investment Specialist

Surprise ranks No. 1 in U.S. for attracting young homebuyers

Surprise ranks No. 1 in U.S. for attracting young homebuyers

  • By: BILL CLARKSON, CCIM
  • Posted: October 25, 2022

 
Article Originally Posted by AZBigMedia on October 25, 2022 
 
 
 
The housing market is rapidly changing, and it’s scaring off many young people who were planning to buy their first home. In a new study, SmartAsset analyzed the 200 largest cities where more (and fewer) young people are buying homes and our findings show that Surprise ranks No. 1 among U.S. cities with the most young homebuyers.
 

The housing market has increasingly discouraged young people from buying homes. A June 2022 survey by Money and Morning Consult found that given the state of the housing market over the past two years, 48% of Generation Z and 44% of Millennials report that they are less likely to buy a home. This is significantly higher than the 38% of people overall who report wariness.

Some cities, however, have attracted more young homebuyers in recent years than others. In this study, SmartAsset analyzed the cities where more (and fewer) young people are buying homes. We compared 200 of the largest cities across two metrics: 2021 homeownership rate for those under 35 and the 10-year change in homeownership rate for those under 35. For more information on our data and how we put it together, read our Data and Methodology section below.

This is SmartAsset’s second annual study on where young homebuyerse are buying homes. Read last year’s version here.

Key Findings

• In eight cities, more than half of young people own their homes. The under-35 homeownership rate is highest in Florida’s Port St. Lucie (roughly 60%). In comparison, nationally, only about 37% of individuals under the age of 35 own their home or apartment.

• California cities rank at the top and bottom of our list. Two California cities rank in our top 10 places where more young people are buying homes (Ontario and Roseville), while four rank in our bottom 10 (Fullerton, Glendale, Torrance and Salinas). Interestingly, though Ontario and Fullerton are less than 30 miles away from each other, the under-35 homeownership rate varies by more than 27 percentage points (41.25% in Ontario and only 13.32% in Fullerton).

• Across the 10 largest cities, Philadelphia ranks highest. Ranking in the top half of the study, about 27% of young people in the City of Brotherly Love are homeowners. In stark contrast, this figure is less than 13% in the two largest U.S. cities (New York and Los Angeles).

Where more young homebuyers are buying homes

Surprise, Arizona ranks as the top place where more young residents are buying homes. Surprise has seen a 10-year increase of 15.88 percentage points in the homeownership rate among people younger than 35, the second-largest growth in our study. The total homeownership for that age cohort in 2021 was 57.60%, also the second-highest rate we analyzed for that metric.

Across the other top nine cities where more young people are buying homes, Chesapeake, Virginia had the best overall 10-year change in the homeownership rate for those under 35. Census Bureau data shows that from 2011 to 2021 the under-35 homeownership rate in Chesapeake grew by almost 16 percentage points. Meanwhile, the 2021 homeownership rate for young people is highest in Port St. Lucie, Florida (60.23%).