Millennials accounted for roughly half of 2024 mortgage applications across the 50 largest U.S. metros, and they led even in the priciest tech hubs, underscoring their role as the market’s most active buyer cohort despite affordability headwinds, according to new Realtor.com data.

Fortune’s recent coverage shows many younger buyers are “buying now, praying later,” leaning on adjusted-rate mortgages (ARMs) or refinancing—an approach experts warn could become a financial “ticking time bomb” if rates don’t fall meaningfully—highlighting risk beneath millennials’ apparent momentum.

What the new report says

Millennials (ages 28–43 in 2024) made 49.7% of mortgage inquiries in the 50 largest metros, down from 52.3% in 2023, with analysts attributing the dip to worsening affordability and rising Gen Z participation, not a millennial retreat.
Their share peaked in the nation’s most expensive tech markets—San Jose (62.6%), Seattle (57.1%), and San Francisco (56.9%)—where high salaries help offset steep prices and down payments, reinforcing a skills-and-income filter on who can buy in top metros.
Down payments and loan sizes mirror that geography: average millennial down payments hit about $213,000 in San Jose and $190,000 in San Francisco, with typical requested loans near $794,000 and $736,000, respectively, reflecting ultra-high list prices and constrained supply.

Buying on a prayer

Fortune has reported that millennials and Gen Z are increasingly counting on future rate cuts—using ARMs or planning to refinance—to make ownership pencil out, but experts stress there’s “no guarantee” rates will drop enough, creating potential payment shock when ARM resets arrive.
Fortune also highlighted how boomers’ massive equity and low-rate “lock-in” are constraining resale inventory—Top Wall Street analyst Meredith Whitney argues seniors “aren’t moving anytime soon,” implying slow relief on supply even if rates ease, which keeps pressure on prices faced by millennial buyers.

Implications for outlook

Near term: Expect millennial demand to remain the primary engine for purchases, particularly in high-wage hubs, while affordability caps keep activity uneven across markets; modest rate dips alone may not unlock broad affordability given stubborn prices and inventory constraints.
Risk profile: Elevated dependence on ARMs/refi hopes among younger buyers introduces refinancing and reset risk; if rates drift sideways and prices stay firm, some households could face budget strain, curbing discretionary spending and heightening vulnerability to shocks.
Supply dynamics: Boomers’ staying power suggests limited existing-home turnover; without a significant new-build surge, the “lock-in” effect will continue to bottleneck inventory, sustaining competition in millennial-favored metros and entrenching a two-track market by income and geography.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.

Millennials are defying warnings about the housing market with a ‘buy now, pray later’ attitude, but boomers could block them