Chicago, IL (PRWEB) July 22, 2014
The Federal Savings Bank has learned that many millennials are following the traditional path of moving to the suburbs when they are ready to settle down and buy a home.
This trend was revealed by Jed Kolko, chief economist for Trulia on June 26 in a release titled "Millennials Are Suburbanizing, While Big Cities Are Having a Baby Boom". With the assistance of using data from the Census Bureau, he found that young adults are not heading for cities in droves as some other data would suggest. This is evidenced by the fact that between 2012 and 2013, there was less population growth among those aged between 20 and 34 in big, dense cities with more than 2,000 households per square mile than there was in big-city suburbs and lower-density cities with 1,000 to 2,000 households per square mile.
"The differences aren't huge, but there's clearly no mad rush to the cities - despite the shift from homeownership to renting among these young adults," Kolko said.
Colorado Springs, Colorado, was the top location for growth among its millennial population, with a 3.2 percent gain between 2012 and 2013. The city was followed by San Antonio, Texas (3 percent), Peabody, Massachusetts (2.9 percent) and Honolulu (2.8 percent).
Baby boomers are heading to the city
While many reports have been claiming the U.S. real estate industry is in a phase of urban growth due to millennials, Kolko said that baby boomers are actually the ones moving to the city in sizeable numbers. Between 2012 and 2013, big, dense cities and big-city suburbs and lower-density cities had the most notable population growth for Americans aged 50 to 69. Austin, Texas, was the top location for boomers, posting a 4.4 percent rise for this population. It was followed by Raleigh, North Carolina (4.3 percent), Dallas (3.5 percent) and Charlotte, North Carolina-South Carolina (3.4 percent).
"Here's what else these boomer-attracting metros have in common: they tend to have relatively young populations," Kolko said. "In fact, Austin has the highest share of millennials of any large metro; millennials account for disproportionately high shares of the populations of Charleston, Dallas, and Houston as well."
He went on to say that boomers tend to seek areas where millennials already live. One city that is seeing this trend is New Orleans. New Orleans is attractive to boomers because of its unique and broad local and international cuisine and cultural events, such as art festivals.
Whether you're a millennial interested in a suburbia or a boomer hunting for a big city dwelling, contact The Federal Savings Bank, a veteran owned bank, for information about low cost mortgage options.