Researchers found that in order to cope with rising prices, millennials have been taking out larger home loans. In 2022, the median loan amount for mortgages taken out by applicants age 25–34 was $315,000, and $365,000 for applicants age 35–44, higher than any other age group.
Similarly, the loan-to-value ratio—or the amount of the mortgage compared to the sale price of the home—was 87% for 25- to 34-year-olds and 80% for 35- to 44-year-olds.
In the Avon Park- Sebring metro area, the median loan amount for millennial home buyers in 2023 was $225,000, with a median loan-to-value ratio of 84.6%.
The latest available statistics showed that overall, millennials accounted for 27.5% of home purchase loans in the Sebring-Avon Park metro last year—the 7th fewest of any small U.S. metro.
The millennial generation (individuals born between 1981 and 1996) has reached the stage in their lives where buying a home is often a top priority. Yet recently, the cost of home ownership has skyrocketed, in large part due to an adverse combination of high interest rates and scarce inventory, leaving millennials with a daunting home ownership outlook.
Despite this—and an overall decline in home buying across the country—millennials still accounted for the majority of the nation’s home purchase loans in 2023 (56.9%). However, rates vary by location. Researchers ranked metros by the millennial share of conventional home purchase loans originated in 2023.
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