15 cities with more first-time homebuyers


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Editor’s note: This story originally appeared on HireAHelper.

Strong demand in the real estate market was one of the main economic stories last year. The COVID-19 pandemic has put a premium on living space, while strong savings rates and investment returns, strong government incentives, and consistently low interest rates have set the right conditions for more homebuyers to enter the real estate market.

But this increase in demand has made the market very competitive and pushed home prices to record levels.

While current market demand is shaped in many ways by factors linked to the pandemic, another driving force is demographics. Millennials—those born between 1981 and 1996—have overtaken the baby boomer generation as the largest living generation in the United States, with more than 72 million members. And at 25-40 years old, millennials are also in the prime age group for first- and second-time home buying.

According to a recent report from the National Association of Realtors, millennials now represent 37% of home buyers, the largest cross-generational segment in the market.

But these young potential homebuyers are frustrated by the low stock of homes for sale. Many potential sellers have stopped listing their current homes, appreciating their living space during the pandemic and worried about looking for their next home in a highly competitive market.

According to data from Redfin, the supply of homes for sale has been lower since the pandemic began than at any other point in recent years, reaching several new historical levels. A common measure of supply is months of inventory, which is calculated as inventory divided by home sales and an estimate of how long the current supply will take to be purchased if no new homes are brought to market. That number dropped below two months for the first time in July 2020 and has remained there ever since, reaching an all-time low of 1.1 months in June 2021.

To determine which young cities have the most homes for sale, researchers at HireAHelper analyzed data from Redfin and the US Census Bureau. HireAHelper only considered cities with average lifespans below the national average of 38.5 years and then calculated the average show months for 2021. At par, the city with the most active listings per owner-occupied housing unit ranked the city with the most active listings higher rank.

Here are the large cities (population 350,000 or more) with the smallest home-buying residents and the most homes for sale.

15. Long Beach, California

Long Beach, California
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  • Average months of supply: 1.7
  • Average active listings per 10,000 homes: 147.1
  • Average active listings per month: 955
  • Average selling price: $706,286
  • Average age of the population: 36.0

14. El Paso, Texas

El Paso, Texas
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  • Average months of supply: 1.8
  • Average active listings per 10,000 homes: 166.1
  • Average active listings per month: 2,132
  • Average selling price: $196,714
  • Average age of the population: 32.9

13. San Francisco, California

San Francisco, California
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  • Average months of supply: 1.8
  • Average active listings per 10,000 homes: 134.3
  • Average active listings per month: 1,825
  • Average selling price: $142,3143
  • Average age of the population: 38.2

12. Dallas, Texas

Dallas, Texas
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  • Average months of supply: 1.8
  • Average active listings per 10,000 homes: 181.5
  • Average active listings per month: 3,827
  • Average selling price: $393,714
  • Average age of the population: 32.9

11. Atlanta, Georgia

Centennial Olympic Park in Atlanta, Georgia
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  • Average months of supply: 1.9
  • Average active listings per 10,000 homes: 437.9
  • Average active listings per month: 4,568
  • Average selling price: $365,857
  • Average age of the population: 33.3

10. Philadelphia, Pennsylvania

Philadelphia, Pennsylvania at dusk
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  • Average months of supply: 2.0
  • Average active listings per 10,000 homes: 175.1
  • Average active listings per month: 5667
  • Average selling price: $262,143
  • Average age of the population: 34.7

9. Houston, Texas

Joseph Som / Shutterstock.com
  • Average months of supply: 2.2
  • Average active listings per 10,000 homes: 302.4
  • Average active listings per month: 10,691
  • Average selling price: $281,143
  • Average age of the population: 33.4

8. Boston, Massachusetts

Boston, Massachusetts
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  • Average months of supply: 2.4
  • Average active listings per 10,000 homes: 246.5
  • Average active listings per month: 2,322
  • Average selling price: $725,429
  • Average age of the population: 32.6

7. Los Angeles, California

The streets of Los Angeles, where the average rent is relatively low
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  • Average months of supply: 2.4
  • Average active listings per 10,000 homes: 184.8
  • Average active listings per month: 9447
  • Average selling price: $891,143
  • Average age of the population: 35.9

6. Cleveland, Ohio

Cleveland, Ohio
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  • Average months of supply: 2.4
  • Average active listings per 10,000 homes: 218.6
  • Average active listings per month: 1,502
  • Average selling price: $112,429
  • Average age of the population: 35.5

5. Milwaukee, Wisconsin

Milwaukee, Wisconsin
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  • Average months of supply: 2.5
  • Average active listings per 10,000 homes: 238.0
  • Average active listings per month: 2,213
  • Average selling price: $170,571
  • Average age of the population: 31.5

4. New Orleans, Los Angeles

New Orleans
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  • Average months of supply: 2.5
  • Average active listings per 10,000 homes: 247.9
  • Average active listings per month: 1,865
  • Average selling price: $329,857
  • Average age of the population: 38.3

3. Chicago, Illinois

Chicago with clouds
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  • Average months of supply: 2.8
  • Average active listings per 10,000 homes: 271.3
  • Average active listings per month: 12,941
  • Average selling price: $343,857
  • Average age of the population: 35.2

2. Detroit, Michigan

Detroit
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  • Average months of supply: 3.1
  • Average active listings per 10,000 homes: 146.7
  • Average active listings per month: 1,875
  • Average selling price: $68,143
  • Average age of the population: 35.0

1. New York, New York

New York City Coast
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  • Average months of supply: 4.8
  • Average active listings per 10,000 homes: 206.0
  • Average active listings per month: 21,066
  • Average selling price: $765.571
  • Average age of the population: 37.2

methodology

Man, analyzing data on a laptop
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The data used in this analysis is from the Redfin Data Center and the 2019 US Census Bureau’s American Community Survey. To identify the young cities with the largest number of homes for sale, the researchers only looked at cities where life expectancy is lower than the national average of 38.5 years.

To rank these cities, the researchers computed the average show months for 2021 with all the data available at the time, covering the months from January to July. In the event of a tie, the city with the most active listings per owner-occupied housing unit ranked highest. To improve relevance, cities with a population of at least 100,000 people were included.

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