Report: Where Millennials Live

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SEATTLE—There are 300 ZIP codes in which 20% or more of the population is between the ages of 25 and 34 and has an associate degree or higher. That is according to a recent report from locally based Redfin, which identified where large clusters of college-educated Millennials live and described the attributes of those communities.

According to Redfin chief economist Nela Richardson, education is strongly linked to higher incomes and a greater probability of buying a home, thus these Millennials are more likely to be future homebuyers.

Richardson found that educated millennials are congregating in urban environments, close to where they work and said, “Not surprisingly, these are also among the most expensive places to live in the country.”

Richardson identifies seven key attributes of these educated millennial ZIP codes, which are:

• Highly educated populations
• Affluence
• Racial diversity
• More single households, roommates and partners
• Fewer families and more college students
• More new neighbors
• High home values

And even though educated millennials are earning good money, many are choosing a more flexible lifestyle rather than being tied down to a mortgage. The homeownership rate for millennials is 42%, compared with 65% for the total US population, according to Redfin tabulation of U.S. Census data.

To find out what factors are influencing millennials' decision to buy a home, Redfin compared the millennial ZIP codes with above average homeownership rates to millennial ZIPs with below average homeownership rates. Median income, diversity and job market opportunities were largely the same in both groups.

Richardson found the big differentiator is housing costs. In millennial ZIPs with higher homeownership rates, home values are $100,000 lower on average, while the average rent is $1,400 more per month.

Richardson pointed out that “When deciding where to live, diversity and job opportunities play a big role. But when deciding where to buy, millennials want what other generations want: affordability.”

To see the top 20 millennial zip codes, check out the chart below.

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