Real Estate Rumblings

Houston lands among the most popular metros for millennial homebuyers

Millennials make up the majority of homebuyers in Houston, according to a new report.

Getty Images/Courtney K

Millennials now make up the largest group of homebuyers in the U.S., and are choosing to lay down roots in big cities and up-and-coming metropolises versus suburbs and small towns.

In a January 6 report, online marketplace LendingTree ranked the 50 most popular metro areas for millennials. Houston lands right in the middle at No. 26.

To determine the rankings, LendingTree analyzed mortgage purchase requests made on their own platform across the nation, beginning January 1 through December 15, 2020.

Though less wealthier than their Baby Boomer and Gen X counterparts, LendingTree points to the current record-low mortgage rates spurred by the pandemic as a reason for the new swath of millennials looking to buy a home.

"What LendingTree [also] found was that millennials (defined as anyone born between 1981 and 1996) make up a majority of potential homebuyers in most of the country’s largest metros," the report says. "Location is typically a primary factor to consider when buying a home, but the pandemic has affected many aspects of the U.S. economy including various industries and local job markets."

Millennials make up 53.77 percent of people looking to purchase a home in the Bayou City, and boast an average age of 31 years, 7 months and a credit score of 660. When it comes to financing, young homebuyers bring an average downpayment of $34,361 and borrow $231,300.

That's well behind Austin, which takes eighth place on the list. Despite a crippled hospitality industry, the Central Texas job market is still considered strong, and the city drew even more attention in 2020 as a cavalry of California-based celebrities decamped to Austin.

Millennials make up 57.34 percent of homebuyers in the Capital City with an average age for a potential buyer of 31 years, 4 months and an average credit score of 687. When it comes to purchase power, Austin homebuyers bring an average of $47,940 as downpayment, and borrow an average of $288,461.

Right behind Houston is Dallas at No. 28. Millennials account for 53.7 percent of homebuyers in Big D, and have an average age of 31 years, 6 months. Millennial buyers bring an average downpayment of $34,815 and borrow $245,355 to finance their investment, says LendingTree.

San Antonio is the fourth and final Texas city in LendingTree's report. At No. 34, millennials make up 51.46 percent of homebuyers in the Alamo City, and have an average age of 31 years, 7 months. As for financing, buyers typically bring $25,867 and finance an average of $203,710.

Rounding out to the top 10 largest metros ranked by millennial popularity: San Jose, California (No. 1); Boston (No. 2); Denver (No. 3); Minneapolis (No. 4); Buffalo, New York (No. 5); San Francisco (No. 6); Salt Lake City (No. 7); Pittsburgh, Pennsylvania (No. 9); and New York City (No. 10).

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income news

This affluent Houston neighbor is America's 2nd wealthiest suburb

City of West University Place, TX - City Government / Facebook

West University Place is the fourth best suburb for house renters in Texas.

West University Place has long been considered Houston's richest suburb, and a new study has revealed this affluent enclave has climbed to the top to become the second wealthiest in America.

The report from GoBankingRates, called "America’s Wealthiest Suburbs Today Compared to 10 Years Ago," tracked the average household income across the nation's 50 wealthiest suburbs from 2014 to 2024. Cities had to have at least 5,000 households and be part of a large metro area to qualify. Income data was sourced from the Census Bureau.

In the new report, West University Place moved up one spot to become the second richest American suburb after ranking third for two consecutive years. Its current ranking is also two spots higher than where it ranked in 2016, at No. 4 nationwide.

The findings also confirm that its residents have certainly become richer over time. According to Census Bureau data, West U. households made $294,723 in average income 2014, which has since surged to $439,594 in 2024.

One more Houston neighbor, Bellaire, also appears among the 50 wealthiest American suburbs. Bellaire now ranks 18th, up from No. 23 last year. Bellaire households made $335,492 on average as of 2024, up from $226,295 in 2014.

Of course, calling either city a "suburb" is sort of absurd, as the late Ken Hoffman hilariously argued in a 2024 column. "A little research or even a phone call would have told them that neither West U nor Bellaire is a suburb. Both are fully independent cities that are completely surrounded by Houston on all sides," Hoffman wrote.

Other affluent suburbs in Texas
Dallas-Fort Worth neighbors University Park, Southlake, and Colleyville are also named among the top 50 wealthiest American suburbs for 2026.

University Park maintains its elite status as the sixth wealthiest suburb in America for the third year in a row. Households made $407,253 on average in total annual income in 2024, up from $254,422 in 2014.

Southlake is the country's eighth wealthiest suburb for 2026, up from No. 16 in 2016. Average household income in this bustling city has grown from $232,034 in 2014 to $384,530 as of 2024, for a growth rate of about 66 percent.

Colleyville, meanwhile, has dropped down the list of the wealthiest suburbs over the last 10 years. It currently ranks 46th but previously ranked 28th in 2016. Average household income in this particular DFW city has increased 35 percent, from $205,828 to $277,720 in 2024.

The top 10 wealthiest suburbs in America in 2026 are:

No. 1 – Scarsdale, New York
No. 2 – West University Place, Texas
No. 3 – Rye, New York
No. 4 – Los Altos, California
No. 5 – Paradise Valley, Arizona
No. 6 – University Park, Texas
No. 7 – Alamo, California
No. 8 – Southlake, Texas
No. 9 – McLean, Virginia
No. 10 – Orinda, California

income gobankingrates.com suburbs houston