Where are millennials buying homes? Nashville ranks among top U.S. places for young homebuyers

Millennials are buying homes at significantly different rates depending on the metro area, according to a study by SmartAsset. In some cities, as many as 1 in 25 residents aged 25 to 44 secured a conventional mortgage in 2024 alone.

In contrast, other major metros saw fewer than 1 in 100 millennial-aged residents make a home purchase last year.

"This disparity can cause divergent implications for local infrastructure, politics, and business demand among different metros," SmartAsset said. "Particularly with many Millennials at the peak of their earning potential, local tax bases, housing markets, and more may also be impacted by such trends."

"Observed from another angle, high rates of Millennials investing in homes in an area may indicate prosperity in the job market, paired with a friendly housing market and economy."

According to mortgage data, 4.08% of millennials in the Nashville area purchased a home in 2024, making Music City a top choice for millennial home buyers. Here's a closer look at where millennials are buying homes.

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A total of 25,512 conventional mortgages were issued in 2024 the Music City area, with a median interest rate of 6.63%. Among millennial homebuyers, the median property value was $455,000, while the median income stood at $123,000, reported SmartAsset.

The total population of the area was 2,104,235, with 624,627 residents aged 25 to 44, representing 29.68% of the population.

Where are millennials buying the most homes?

Raleigh, North Carolina leads the nation in millennial homebuying, with 4.5% of Raleigh-Cary residents aged 25-44 purchasing homes with conventional mortgages in 2024, the highest share among all metro areas studied.

The Raleigh-Cary metro area was followed by Indianapolis-Carmel-Greenwood at No. 2, Charlotte-Concord-Gastonia at No. 3, and the Nashville Metropolitan area at No. 4.

Rounding out the top five was the Cincinnati metro area.

Methodology

To find where millennials are purchasing homes at the fastest rates, SmartAsset analyzed 2024 Home Mortgage Disclosure Act data. The study focused on originated mortgages for people aged 25 to 44, comparing them to the size of the local population in the same age group based on 2023 U.S. Census Bureau estimates.

The study also considered the median income of new millennial homeowners and the value of the properties they purchased.

Diana Leyva covers trending news and service journalism for the Tennessean. Contact her at [email protected] or follow her on X at @_leyvadiana

This article originally appeared on Nashville Tennessean: Nashville among top U.S. places where millennials are buying homes