Millennials, now aged 28 to 44, are becoming America’s dominant force in real estate. But skyrocketing home prices and rising mortgage rates are pushing them to seek affordability and opportunity in new places. According to the National Association of Realtors, the median age of first-time buyers is 35, placing most millennials squarely in the homeownership phase of life.
In this article, we explore the top 10 U.S. cities where millennials are actively moving and buying homes in 2025. Using new migration data from SmartAsset and mortgage lending trends from Construction Coverage, we break down where millennials are going, why they’re choosing these cities, and what first-time homebuyers can expect in terms of income, housing costs, and financing.
Overview
- Millennials now dominate first-time home purchases, with the median age of the buyer at 35, despite rising mortgage rates and housing costs.
- Top cities, such as Alexandria, Cambridge, and Denver, are seeing the highest share of millennial in-migration in 2025.
- Affordability, career growth, and quality of life are key factors driving their relocation decisions.
- Millennials are taking out higher loan amounts and bigger loan-to-value ratios to enter the market.
- Regional gaps are widening, coastal hubs like San Jose and Seattle thrive, while parts of Florida and California lag in millennial appeal.
Top 10 Cities Where Millennials Are Moving in 2025
Millennials are making strategic choices when it comes to relocation, prioritizing affordability, career opportunities, and quality of life. Based on migration data and mortgage activity, these 10 cities have emerged as the top hubs attracting millennial residents in 2025.
Alexandria, Virginia
Alexandria ranks first in millennial inflow, with nearly 1 in 8 residents being a newly arrived millennial. Its blend of job proximity, urban charm, and livability makes it an ideal choice for first-time homebuyers in the D.C. metro area.
- Millennial transplants as % of population: 12.67%
- Total millennials who moved in during 2023: 19,486
- Median household income: $110,294
- Median monthly housing cost: $2,105
Where Do They Come From?
- Same county: 4,680
- Out of state: 8,252
- Abroad: 760
Why Does It Appeal To Millennials?
Alexandria combines access to high-paying jobs in Washington, D.C., with a more suburban feel, historic architecture, and walkable neighborhoods. Its strong public transit links and cultural lifestyle scene also attract young professionals looking to settle down without sacrificing urban convenience.
Cambridge, Massachusetts
Cambridge ranks second for millennial influx, drawing young buyers with its elite universities, biotech jobs, and urban amenities. A significant portion of new millennial residents come from out of state or abroad, reflecting its national and global appeal.
- Millennial transplants as % of population: 12.15%
- Total millennials who moved in during 2023: 14,197
- Median household income: $134,307
- Median monthly housing cost: $2,789
Where Do They Come From?
- Same county: 4,933
- Out of state: 3,166
- Abroad: 2,356
Why Does It Appeal To Millennials?
Cambridge attracts first-time buyers looking for high-paying tech and academic careers, with proximity to MIT and Harvard. While expensive, the city’s walkability, public transit, and startup ecosystem make it a compelling choice for educated millennials with strong earning potential.
Denver, Colorado
Denver continues to attract millennials in large numbers due to its balance of career opportunities, lifestyle appeal, and relative affordability compared to coastal cities. A strong local economy, scenic surroundings, and remote work flexibility make it a top destination for younger buyers.
- Millennial transplants as % of population: 11.78%
- Total millennials who moved in during 2023: 83,447
- Median household income: $94,157
- Median monthly housing cost: $1,886
Where Do They Come From?
- Same county: 33,816
- Out of state: 21,655
- Abroad: 2,241
Why Does It Appeal To Millennials?
Denver’s active lifestyle, outdoor access, and growing tech and finance sectors make it a strong draw. Many millennials find the housing market more accessible than in cities like San Francisco or New York. It also supports a growing remote-friendly culture, helping transplants relocate with confidence.
Sandy Springs, Georgia
Sandy Springs has quietly become a millennial hotspot thanks to its proximity to Atlanta, strong job prospects, and a balanced lifestyle. It offers urban convenience without the congestion or cost of larger metros, making it ideal for young professionals and first-time buyers.
- Millennial transplants as % of population: 11.63%
- Total millennials who moved in during 2023: 12,189
- Median household income: $110,401
- Median monthly housing cost: $1,894
Where Do They Come From?
- Same county: 5,909
- Out of state: 1,666
- Abroad: 800
Why Does It Appeal To Millennials?
Sandy Springs combines affordability with accessibility to high-paying jobs, especially in healthcare and tech. The area offers good schools, green spaces, and a walkable downtown. Millennials are also drawn by lower housing costs compared to nearby Atlanta, with enough amenities to support family life and career growth.
Seattle, Washington
Seattle continues to be a magnet for millennials due to its thriving tech economy, scenic surroundings, and strong urban infrastructure. While housing is more expensive, the city offers unmatched career opportunities and lifestyle perks that appeal to educated young professionals.
- Millennial transplants as % of population: 11.51%
- Total millennials who moved in during 2023: 86,049
- Median household income: $120,608
- Median monthly housing cost: $2,155
Where Do They Come From?
- Same county: 51,638
- Out of state: 23,515
- Abroad: 5,731
Why Does It Appeal To Millennials?
Seattle is home to giants like Amazon and Microsoft, offering stable and high-paying jobs. Public transport is efficient, neighborhoods are walkable, and outdoor recreation is abundant. Despite a higher cost of living, millennials are drawn by upward mobility, cultural vibrancy, and long-term value in homeownership.
Sunnyvale, California
Located in the heart of Silicon Valley, Sunnyvale attracts tech-savvy millennials seeking career growth. Though the cost of living is high, the city offers strong job prospects, excellent amenities, and proximity to major employers and innovation hubs.
- Millennial transplants as % of population: 11.20%
- Total millennials who moved in during 2023: 16,754
- Median household income: $189,443
- Median monthly housing cost: $3,012
Where Do They Come From?
- Same county: 9,111
- Out of state: 2,515
- Abroad: 2,161
Why Does It Appeal To Millennials?
Sunnyvale’s appeal lies in its direct access to high-paying tech roles, low crime rate, and top-rated public schools. For millennials working in STEM or startups, the convenience of being close to offices and networking hubs outweighs housing costs. The lifestyle is fast-paced yet family-friendly, making it ideal for first-time buyers with career ambitions.
Santa Clara, California
Santa Clara sits adjacent to Sunnyvale in the Silicon Valley corridor, offering similar professional benefits with a slightly more suburban feel. It’s home to tech giants, universities, and growing residential appeal among career-oriented millennials.
- Millennial transplants as % of population: 10.88%
- Total millennials who moved in during 2023: 14,082
- Median household income: $166,228
- Median monthly housing cost: $2,941
Where Do They Come From?
- Same county: 8,396
- Out of state: 2,185
- Abroad: 885
Why Does It Appeal To Millennials?
Santa Clara offers access to major employers like Intel and Nvidia, along with proximity to San Jose State and Santa Clara University. The city balances a thriving job market with a quieter pace of life than nearby metros. Millennials are drawn by the promise of upward mobility, safe neighborhoods, and walkable amenities, even if housing costs remain steep.
Austin, Texas
Austin has cemented its reputation as a millennial magnet thanks to its thriving tech scene, diverse culture, and relatively lower housing costs compared to coastal metros. It's one of the fastest-growing cities in the U.S. and remains a top pick for first-time homebuyers.
- Millennial transplants as % of population: 10.69%
- Total millennials who moved in during 2023: 103,738
- Median household income: $91,501
- Median monthly housing cost: $1,828
Where Do They Come From?
- Same county: 55,591
- Out of state: 19,890
- Abroad: 6,854
Why Does It Appeal To Millennials?
Austin offers a rare combination of job growth, cultural flair, and relative affordability. The city is home to large employers like Dell and Oracle, boasts a booming startup ecosystem, and offers no state income tax. Millennials are also drawn to its music festivals, green spaces, and walkable downtown districts, making it ideal for both career and lifestyle priorities.
Orlando, Florida
Orlando isn’t just a tourist hub; it’s increasingly popular among millennials looking for affordable first homes. With no state income tax, warm weather, and a growing job market in healthcare, tech, and hospitality, the city has become an attractive option for first-time buyers.
- Millennial transplants as % of population: 10.49%
- Total millennials who moved in during 2023: 33,226
- Median household income: $69,414
- Median monthly housing cost: $1,762
Where Do They Come From?
- Same county: 17,216
- Out of state: 4,847
- Abroad: 2,953
Why Does It Appeal To Millennials?
Orlando combines lifestyle perks with affordability. It’s one of Florida’s most walkable cities and has a range of new residential developments tailored for young families. Millennial buyers are also attracted by its job prospects, proximity to universities, and family-friendly neighborhoods with good schools.
Washington, District of Columbia
Washington, DC, remains a strong draw for millennials seeking stable careers in government, education, and tech. With a rich cultural scene, excellent public transport, and competitive salaries, the city continues to attract educated young professionals despite high housing costs.
- Millennial transplants as % of population: 10.00%
- Total millennials who moved in during 2023: 67,013
- Median household income: $108,210
- Median monthly housing cost: $2,083
Where Do They Come From?
- Same county: 36,390
- Out of state: 24,465
- From abroad: 6,159
Why Does It Appeal To Millennials? The city’s mix of career opportunities, historic neighborhoods, and progressive lifestyle options makes it ideal for first-time millennial buyers. Many are drawn to the District’s diverse economy, top-ranked universities, and professional networking advantages.
Here’s the next section completed as requested:
Conclusion
Millennials are reshaping the U.S. housing map, favoring cities that offer economic opportunity, livability, and financial flexibility. Their movement is not random. It’s a clear signal of where future demand and urban growth are heading.
For real estate investors and developers, tracking these migration trends isn’t optional; it’s essential. Want data like this in your inbox daily? Subscribe to ZeroFlux and stay a step ahead of the market.
FAQs
Are Millennials Still Buying In High-Cost Metros?
Yes, but cautiously. Millennials continue to buy in high-cost metros like San Francisco and Seattle, but often in satellite suburbs or by compromising on home size. Many rely on family support or take on higher LTV ratios to enter these markets. In such cases, long-term job security, lifestyle priorities, and equity-building potential tend to outweigh the short-term affordability concerns.
How Is Remote Work Influencing Millennial Migration?
Remote work has widened the geographic lens for millennial buyers. With location flexibility, many are choosing cities that offer better living standards without sacrificing career opportunities. This has boosted real estate activity in cities once considered secondary or tertiary markets. The trend also supports hybrid living, owning in one city while working in another, especially where the commute isn’t daily.
What Are The Risks For Millennials Buying In Rising Markets?
Buying in fast-growing cities carries risks like overvaluation, market saturation, and limited future equity growth. Some regions may also face infrastructure constraints or lagging job markets that catch up later. Millennials must evaluate neighborhood-level trends, local economic indicators, and potential interest rate fluctuations. Inexperienced buyers may also underestimate long-term maintenance and ownership costs, impacting financial stability.
What Income Level Helps Millennials Afford Homes In Top Cities?
Affording a home typically requires an annual income above $85,000 in most cities millennials are targeting. However, some markets still offer entry points at lower thresholds. Dual-income households, remote work arrangements, and down payment assistance programs also play a role in enabling affordability. Debt-to-income ratios and local lending norms further influence what’s realistically attainable for many first-time buyers.