SEATTLE--(BUSINESS WIRE)--Redfin (www.redfin.com), the customer-first real estate brokerage, today released a report that identifies where large clusters of college-educated millennials live and describes the attributes of those communities. Redfin chief economist Nela Richardson found that there are 300 ZIP codes in which 20 percent or more of the population is between the ages of 25 and 34 and has an associate degree or higher. Education is strongly linked to higher incomes and a greater probability of buying a home, thus these millennials are more likely to be future homebuyers.
Richardson found that educated millennials are congregating in urban environments, close to where they work and said, “Not surprisingly, these are also among the most expensive places to live in the country.”
Richardson identifies seven key attributes of these educated millennial ZIP codes, which are:
- Highly educated populations
- Racial diversity
- More single households, roommates and partners
- Fewer families and more college students
- More new neighbors
- High home values
And even though educated millennials are earning good money, many are choosing a more flexible lifestyle rather than being tied down to a mortgage. The homeownership rate for millennials is 42 percent, compared with 65 percent for the total U.S. population, according to Redfin tabulation of U.S. Census data.
To find out what factors are influencing millennials’ decision to buy a home, Redfin compared the millennial ZIP codes with above average homeownership rates to millennial ZIPs with below average homeownership rates. Median income, diversity and job market opportunities were largely the same in both groups. Richardson found the big differentiator is housing costs. In millennial ZIPs with higher homeownership rates, home values are $100,000 lower on average, while the average rent is $1,400 more per month.
Richardson concluded, “When deciding where to live, diversity and job opportunities play a big role. But when deciding where to buy, millennials want what other generations want: affordability.”
To view the full report and read more about each attribute, please click here: http://blog.redfin.com/blog/2014/09/where-do-college-educated-millennials-live.html.
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Redfin (www.redfin.com) is a customer-first real estate brokerage that represents people buying and selling homes. Founded and run by technologists, Redfin has a team of experienced, full-service real estate agents who are advocates, not salespeople, earning customer-satisfaction bonuses, not commissions. Redfin.com features all the broker-listed homes for sale, as well as for-sale-by-owner properties that don't pay brokers a commission. Redfin also offers online tools that make the entire process of buying or selling a home easier and more fun. The company serves major markets across the U.S. and has closed more than $13 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World's Most Valuable Private Tech Companies by Business Insider.