Before they were kneecapped by the global COVID-19 pandemic, Millennials were held at arm’s length from homeownership by crushing student debt and an incredibly competitive seller’s market. However, this generation has rebounded throughout the U.S. Unfortunately, Millenials in Dallas haven’t felt the rising tide that lifts all homeownership boats. In fact, at an average age of 34, Millennials are the oldest first-time homebuyers in recent history.
In a recent study from RentCafé, the Dallas metropolitan statistical area accounts for the second-largest number of Millennial homeowners. Millennials in San Antonio and Austin are already homeowner-majority generations, while Houston is on the cusp of reaching this milestone.
Why is Dallas still a renter-majority metro for Millennials?
Dallas saw a 64 percent jump in Millennial owners, while the number of renters increased by 5 percent. As a result, 43 percent of people in this age group are now living in their own homes. However, in Houston, Millennials have increased their homeownership margin by 52 percent over the past five years while the number of Millennial renters dropped by 15 percent.
Further west, the Austin metro area saw its number of Millennial owners more than double (112 percent rise). On the other hand, it recorded a moderate 6 percent increase in Millennial renters.
Outpacing Houston, Dallas, and Austin, Millennial homeowners in San Antonio rose by a whopping 128 percent. Also, there are 20 percent fewer renters in this age group than five years ago.
But what’s most fascinating is the ebb and flow of Millennial homeowners versus Baby Boomers. In Dallas, as the number of Baby Boomer homeowners and renters has grown, so have Millennial homeowners. Interestingly, the number of Gen X homeowners and renters has shrunk.
“Dallas’ tech town appeal convinced a significant amount of young talent to choose it for buying a forever home,” the report stated. “The metro saw a 64 percent gain in Millennial owners between 2017 and 2022 and a mere 4.5 percent uptick in Millennial renters. The number of Gen Zers who bought a home in Dallas grew five times in that same timeframe, while the number of Zoomer renters multiplied seven times.”
But competition for housing is high, which is not news for Dallas home buyers.
“Surprisingly, the area was also popular for Baby Boomers,” RentCafé’s report detailed. “Dallas saw a 5 percent rise in Boomer homeowners and an 18 percent increase in Boomer renters in the last five years.”
Ready to dive deeper into the numbers? You can read the entire trend report from RentCafé here.
