6 Cities Where Real Estate Investment Pays Off for Millennials
Millennials are entering their prime years for buying and investing in real estate. While the market keeps changing, there are still cities where prices and activity are lining up in ways that support long-term wealth building.
A recent Trust & Will study looked at 73 U.S. metros and ranked them to highlight the best markets where affluent millennials are growing wealth. Housing only accounts for about 10% of the overall score, but it's a key focus for millennials looking to invest in real estate, measured through the Zillow Home Value Index and the five-year change in building permits.
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Here are six cities from some of the top metros where housing and construction trends could be setting millennials up to get results from real estate.
1. Sacramento, California
Housing and real estate rank: 1 (Sacramento-Roseville-Folsom)
Zillow home value index rank: 13
Real estate permits change rank: 3
Sacramento-Roseville-Folsom ranks at the top for housing performance, though overall it is No. 10 on the report. New homes are continuing to be built, with prices high enough to show growth but not so high that they scare buyers away.
2. Phoenix
Housing and real estate rank: 7 (Phoenix-Mesa-Chandler)
Zillow home value index rank: 24
Real estate permits change rank: 6
Phoenix is growing fast, with plenty of new homes being built. Phoenix-Mesa-Chandler ranks third on the overall list.
3. Nashville, Tennessee
Housing and real estate rank: 9 (Nashville-Davidson-Murfreesboro-Franklin)
Zillow home value index rank: 23
Real estate permits change rank: 19
Home prices and building activity in the metro area are stable, making it a solid market for new investors and renters looking to own.
4. Austin, Texas
Housing and real estate rank: 10 (Austin-Round Rock-San Marcos)
Zillow home value index rank: 25
Real estate permits change rank: 17
The Austin-Round Rock-San Marcos metro is ranked the No. 1 millennial wealth hotspot. Jobs and incomes are growing fast, and construction is keeping up. That makes Austin a market where investing in property still makes sense.
5. Raleigh, North Carolina
Housing and real estate rank: 11 (Raleigh-Cary)
Zillow home value index rank: 26
Real estate permits change rank: 16
Raleigh is forecasted by relocation company moveBuddha as the 8th most popular city people will be moving to in 2026. Steady demand and consistent housing growth make it somewhere worth watching.
6. Boise, Idaho
Housing and real estate rank: 13 (Boise City)
Zillow home value index rank: 19
Real estate permits change rank: 31
Boise's housing values are stable, though construction there is slower. What that means, however, is that millennial buyers get a chance to enter the market without chasing price spikes.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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