Millennial demand is driving up prices in family-friendly neighborhoods, including right here in Illinois.
With a record number of millennials reaching the age for new parents to buy their first home, that demand is sparking serious competition in areas already hampered by historically low housing inventory and could accelerate prices even higher, according to a new Zillow report.
The report found, across the country, 10% of ZIP codes with the largest share of children had an average home value growth of 21.3% from October 2020 to October 2021.
In Illinois, Plainfield had the highest share of children at 34.1% with home values growing 16.9% in 2021. Chicago’s West Park|West Town area had the smallest share at -0.8%.
“As millennials go, so goes the housing market, and we are seeing now, as millennials age, that they are looking for homes that fit the needs of growing families,” said Zillow economist Nicole Bachaud. “Millennial demand has helped push up home prices in areas with the most children. Competition for homes in these family-friendly areas should intensify in the coming years as more millennials reach the key age of 32, adding to the affordability squeeze.”
Zillow said millennials reaching peak age to buy their first home, grew during the past nine years and is “about to turn into an avalanche.” According to the report, 200,000 more Americans will turn 32 in 2022 compared to 2021, the biggest jump since 2013.