Baby boomers are the wealthiest generation of Americans alive today, according to the latest Federal Reserve data, and plenty are still looking to buy homes.
But where are baby boomers looking to buy? To answer this question, LendingTree analyzed mortgage purchase requests made in 2020 on the LendingTree platform across the nation’s 50 largest metropolitan areas (metros).
What LendingTree found was that baby boomers (defined as anyone born between 1946 and 1964) make up a significant portion of potential homebuyers in many of the country’s largest metros.
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Methodology
LendingTree used generational definitions, from the Pew Research Center, to define the age range for baby boomers as being born between 1946 and 1964.
Metropolitan statistical area (MSA) rankings were generated by looking at the percentage of total purchase mortgage requests received by LendingTree from baby-boomer borrowers. The larger the share of requests from baby boomers, the higher ranking a metro area received.
Borrower data was derived from mortgage requests and offers given to users of the LendingTree mortgage shopping platform across the nation’s 50 largest metropolitan areas from Jan. 1, 2020, to Dec. 31, 2020.
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Home buying tips for Boomers
In general, baby boomers tend to have stronger financial profiles than those of younger generations, but that doesn’t mean that they don’t need to carefully plan before buying a home.
Here are some tips for baby boomers looking to buy a home:
- Consider how it will impact your retirement. If you’re thinking about buying a house while you’re nearing or at retirement age, you’ll want to carefully consider how costs associated with that house will impact you when you’re no longer working. For example, if you pay with cash, ask yourself if you will be able to afford property taxes or other annual fees. If you decide to take out a loan, consider whether or not you’ll be able to make your monthly payments.
- Look into different loan programs. There are many different loan programs that could be beneficial to you depending on your financial profile. For example, if you’re an older baby boomer you might be able to qualify for a retirement mortgage, which can help you get around income requirements that you’re likely to find with other loans.
- Pay down your monthly debts. If you decide to purchase a home with a loan, lenders look carefully at your debt-to-income (DTI) ratio, the percentage of your gross monthly income that goes toward recurring debts. Maximum DTI ratios vary by loan program, however, so it’s a good idea to keep your total DTI ratio (which includes your monthly mortgage and all debt payments) at 43% or less. Even if you plan on paying with cash, it’s a good idea to pay off as much debt as you can so you have extra money for housing-related costs.
Image Credit: Deposit Photos.
25. Houston
- Share of mortgage requests coming from baby boomers: 10.28%
- Average baby boomer age: 62.5
- Average credit score among baby boomers: 677
- Average down payment amount among baby boomers: $45,644
- Average requested loan amount among baby boomers: $224,083
Image Credit: Deposit Photos.
24. Nashville
- Share of mortgage requests coming from baby boomers: 10.38%
- Average baby boomer age: 62.2
- Average credit score among baby boomers: 689
- Average down payment amount among baby boomers: $57,105
- Average requested loan amount among baby boomers: $260,750
Image Credit: iStock/Vito Palmisano.
23. Los Angeles
- Share of mortgage requests coming from baby boomers: 10.49%
- Average baby boomer age: 62.3
- Average credit score among baby boomers: 693
- Average down payment amount among baby boomers: $97,495
- Average requested loan amount among baby boomers: $423,968
Image Credit: iStock/shalunts.
22. Raleigh, North Carolina
- Share of mortgage requests coming from baby boomers: 10.60%
- Average baby boomer age: 61.8
- Average credit score among baby boomers: 685
- Average down payment amount among baby boomers: $44,823
- Average requested loan amount among baby boomers: $225,762
Image Credit: iStock/Mark Howard.
21. Oklahoma City
- Share of mortgage requests coming from baby boomers: 10.65%
- Average baby boomer age: 62.1
- Average credit score among baby boomers: 682
- Average down payment amount among baby boomers: $34,531
- Average requested loan amount among baby boomers: $173,498
Image Credit: Deposit Photos.
20. Atlanta
- Share of mortgage requests coming from baby boomers: 10.67%
- Average baby boomer age: 62.1
- Average credit score among baby boomers: 667
- Average down payment amount among baby boomers: $39,789
- Average requested loan amount among baby boomers: $214,220
Image Credit: gabrieleckert / iStock.
19. Charlotte, North Carolina
- Share of mortgage requests coming from baby boomers: 10.84%
- Average baby boomer age: 62.2
- Average credit score among baby boomers: 674
- Average down payment amount among baby boomers: $42,830
- Average requested loan amount among baby boomers: $217.053
Image Credit: DepositPhotos.com.
18. Portland, Oregon
- Share of mortgage requests coming from baby boomers: 10.89%
- Average baby boomer age: 62.3
- Average credit score among baby boomers: 692
- Average down payment amount among baby boomers: $58,762
- Average requested loan amount among baby boomers: $282,576
Image Credit: DepositPhotos.com.
17. Memphis
- Share of mortgage requests coming from baby boomers: 10.92%
- Average baby boomer age: 61.6
- Average credit score among baby boomers: 662
- Average down payment amount among baby boomers: $30,158
- Average requested loan amount among baby boomers: $192,342
Image Credit: DepositPhotos.com.
16. Richmond, Virginia
- Share of mortgage requests coming from baby boomers: 10.96%
- Average baby boomer age: 62.6
- Average credit score among baby boomers: 681
- Average down payment amount among baby boomers: $41,749
- Average requested loan amount among baby boomers: $209,718
Image Credit: iStock/Sean Pavone.
15. Birmingham, Alabama
- Share of mortgage requests coming from baby boomers: 11.62%
- Average baby boomer age: 62.2
- Average credit score among baby boomers: 666
- Average down payment amount among baby boomers: $34,208
- Average requested loan amount among baby boomers: $180,679
Image Credit: DepositPhotos.com.
14. Baltimore
- Share of mortgage requests coming from baby boomers: 11.63%
- Average baby boomer age: 61.9
- Average credit score among baby boomers: 671
- Average down payment amount among baby boomers: $44,295
- Average requested loan amount among baby boomers: $247,038
Image Credit: DepositPhotos.com.
13. San Antonio
- Share of mortgage requests coming from baby boomers: 11.70%
- Average baby boomer age: 62.6
- Average credit score among baby boomers: 674
- Average down payment amount among baby boomers: $40,399
- Average requested loan amount among baby boomers: $213,417
Image Credit: DepositPhotos.
12. Providence, Rhode Island
- Share of mortgage requests coming from baby boomers: 11.97%
- Average baby boomer age: 62.1
- Average credit score among baby boomers: 694
- Average down payment amount among baby boomers: $48,934
- Average requested loan amount among baby boomers: $239,478
Image Credit: SeanPavonePhoto/iStock.
11. New Orleans
- Share of mortgage requests coming from baby boomers: 12.12%
- Average baby boomer age: 62.3
- Average credit score among baby boomers: 676
- Average down payment amount among baby boomers: $41,479
- Average requested loan amount among baby boomers: $204,111
Image Credit: Sean Pavone / iStock.
10. Sacramento, California
- Share of mortgage requests coming from baby boomers: 12.46%
- Average baby boomer age: 62.4
- Average credit score among baby boomers: 685
- Average down payment amount among baby boomers: $59,287
- Average requested loan amount among baby boomers: $285,923
Image Credit: iStock/Chris LaBasco.
9. Virginia Beach, Virginia
- Share of mortgage requests coming from baby boomers: 13.19%
- Average baby boomer age: 61.9
- Average credit score among baby boomers: 665
- Average down payment amount among baby boomers: $38,683
- Average requested loan amount among baby boomers: $226,908
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8. San Diego
- Share of mortgage requests coming from baby boomers: 13.20%
- Average baby boomer age: 62.6
- Average credit score among baby boomers: 702
- Average down payment amount among baby boomers: $91,017
- Average requested loan amount among baby boomers: 4409,620
Image Credit: iStock / Jerry Uomala.
7. Orlando, Florida
- Share of mortgage requests coming from baby boomers: 13.27%
- Average baby boomer age: 62.5
- Average credit score among baby boomers: 684
- Average down payment amount among baby boomers: $43,025
- Average requested loan amount among baby boomers: $218,010
Image Credit: DepositPhotos.com.
6. Riverside, California
- Share of mortgage requests coming from baby boomers: 13.73%
- Average baby boomer age: 62.7
- Average credit score among baby boomers: 683
- Average down payment amount among baby boomers: $53,586
- Average requested loan amount among baby boomers: $276,202
Image Credit: DepositPhotos.com.
5. Jacksonville, Florida
- Share of mortgage requests coming from baby boomers: 13.95%
- Average baby boomer age: 62.8
- Average credit score among baby boomers: 687
- Average down payment amount among baby boomers: $46,364
- Average requested loan amount among baby boomers: $219,520
Image Credit: Philip Rozenski / iStock.
4. Miami
- Share of mortgage requests coming from baby boomers: 15.26%
- Average baby boomer age: 62.5
- Average credit score among baby boomers: 697
- Average down payment amount among baby boomers: $63,759
- Average requested loan amount among baby boomers: $269,351
Image Credit: DepositPhotos.com.
3. Phoenix
- Share of mortgage requests coming from baby boomers: 16.36%
- Average baby boomer age: 63.2
- Average credit score among baby boomers: 693
- Average down payment amount among baby boomers: $54,342
- Average requested loan amount among baby boomers: $264,800
Image Credit: iStock/Sean Pavone.
2. Tampa, Florida
- Share of mortgage requests coming from baby boomers: 17.33%
- Average baby boomer age: 62.9
- Average credit score among baby boomers: 690
- Average down payment amount among baby boomers: $41,341
- Average requested loan amount among baby boomers: $196,524
Image Credit: Gabriele Maltinti / iStock.
1. Las Vegas
- Share of mortgage requests coming from baby boomers: 19.97%
- Average baby boomer age: 63.2
- Average credit score among baby boomers: 681
- Average down payment amount among baby boomers: $52,262
- Average requested loan amount among baby boomers: $263,256
LendingTree senior research analyst Jacob Channel contributed to this report.
This article originally appeared on LendingTree.com and was syndicated by MediaFeed.org.
Image Credit: DepositPhotos.com.
