Chat
Chat with Sales Hours: Monday-Friday 8:30 a.m. - 4:30 p.m. (CST)
Contact Sales
Call Sales Toll-Free 1-(866) 774-3282 Hours: Monday-Friday 7 a.m. - 5 p.m. (CST)
Product Login
Product Log-in
Product Support
Product Support
Email Sales
Contact Sales
After Hours
  • Support
  • Sign In Sign In
  • AUS NZ UK
CoreLogic - Home
  • Solutions
    view solutions by:

    Data Solutions

    • Lead Generation
    • Property Data
    • Location Intelligence

    Real Estate

    • Multiple Listing Enterprise
    • Agent & Broker

    Mortgage

    • Origination
    • Servicing
    • Appraisal
    • Commercial Property Tax

    Insurance

    • Hazard Risk
    • Catastrophe Risk Management
    • Risk Evaluation
    • Underwriting Automation
    • Weather
    • Claims Automation
    • Restoration
    • INTRCONNECT

    Mortgage Lenders

    • Origination

    Mortgage Servicers

    • Residential Property Tax
    • Default & Loss Mitigation
    • Portfolio Insight & Monitoring

    Mortgage Appraisers

    • Appraisal

    Real Estate Agents & Brokers

    • Agents & Brokers

    Real Estate MLS

    • Multiple Listing Enterprises

    Commercial Real Estate Owners

    • Commercial Property Tax

    Marketing Departments

    • Property Data

    Insurance Underwriters

    • Risk Evaluation
    • Underwriting Automation
    • Hazard Risk
    • Catastrophe Risk Management

    Insurance Risk Managers

    • Risk Evaluation
    • Hazard Risk
    • Catastrophe Risk Management

    Insurance Claims

    • Claims Automation
    • Restoration Contractors
    • Weather Verification

    Construction Contractors

    • Restoration Contractors

    General

    • Location Intelligence
    • Lead Generation
    • Data Solutions
  • Resources

    Reports

    • Climate Change
    • Construction Cost Update
    • Construction Insights
    • Home Price Insights
    • Homeowner Equity Insights
    • Loan Performance Insight
    • Mortgage Fraud
    • Property Tax Delinquency
    • Single-Family Rent Index

    Insight Blogs

    • Hazard HQ
    • Office of Chief Economist
    • Affordable Housing
    • Homebuying
    • Insurance
    • Other Articles

    More Resources

    • Events
    • Case Studies
    • White Papers
    • Podcasts
    • Quick Takes
  • Company
    • About
    • Leadership
    • Newsroom
    • Contact
    • Careers
  • Search
CoreLogic - Home
  • Solutions
  • Resources
  • Company

    • About
    • Leadership
    • Newsroom
    • Contact
    • Careers
  • Accounts

    • Products Sign-in
  • Contact

    • Sales Contact
    • Product Support
  • Regions

    • Australia
    • New Zealand
    • United Kingdom
  • Social

    • Facebook
    • Instagram
    • Linkedin
    • Twitter
    • Youtube
Solutions
VIEW BY:
  • Data Solutions

    • Lead Generation
    • Property Data
    • Location Intelligence
  • Real Estate

    • Multiple Listing Enterprise
    • Agent & Broker
  • Mortgage

    • Origination
    • Servicing
    • Appraisal
    • Commercial Property Tax
  • Insurance

    • Hazard Risk
    • Catastrophe Risk Management
    • Risk Evaluation
    • Underwriting Automation
    • Weather
    • Claims Automation
    • Restoration
    • INTRCONNECT
  • Mortgage Lenders

    • Origination
  • Mortgage Servicers

    • Residential Property Tax
    • Default & Loss Mitigation
    • Portfolio Insight & Monitoring
  • Mortgage Appraisers

    • Appraisal
  • Real Estate Agents & Brokers

    • Agents & Brokers
  • Real Estate MLS

    • Multiple Listing Enterprises
  • Commercial Real Estate Owners

    • Commercial Property Tax
  • Marketing Departments

    • Property Data
  • Insurance Underwriters

    • Risk Evaluation
    • Underwriting Automation
    • Hazard Risk
    • Catastrophe Risk Management
  • Insurance Risk Managers

    • Risk Evaluation
    • Hazard Risk
    • Catastrophe Risk Management
  • Insurance Claims

    • Claims Automation
    • Restoration Contractors
    • Weather Verification
  • Construction Contractors

    • Restoration Contractors
  • General

    • Location Intelligence
    • Lead Generation
    • Data Solutions
Resources
  • Reports

    • Climate Change
    • Construction Cost Update
    • Construction Insights
    • Home Price Insights
    • Homeowner Equity Insights
    • Loan Performance Insight
    • Mortgage Fraud
    • Property Tax Delinquency
    • Single-Family Rent Index
  • Insight Blogs

    • Hazard HQ
    • Office of Chief Economist
    • Affordable Housing
    • Homebuying
    • Insurance
    • Other Articles
  • More Resources

    • Events
    • Case Studies
    • White Papers
    • Podcasts
    • Quick Takes

Home / Intelligence / Younger Millennials Will Propel Condo Demand

ABOUT THE AUTHOR
Archana Pradhan
Archana Pradhan
Principal, Economist, Office of the Chief Economist
View Profile
  • May 15, 2019

Younger Millennials Will Propel Condo Demand

Houston, North Port, FL and Miami are seeing increase in condo sales

Condos can be the most affordable option for many looking to purchase a home, including younger and first-time homebuyers (FTHBs) and down-sizing baby boomers. CoreLogic Loan Application data shows that FTHBs gravitate toward condos. Last year about 43% of all condo home-purchase mortgage applications were submitted by FTHBs, which submitted just 32% of all mortgage applications for single-family residences. Similarly, the data show condos were more popular with young homebuyers and empty nesters. For instance, 21% of all condo home-purchase mortgage applications were submitted by buyers aged 18 to 30, compared with just 17% of all single-family home-purchase mortgage applications by the same group in 2018. Similarly, 23% of all condo home-purchase mortgage applications were submitted by buyers aged 55 to 80, compared with just 18% of all single-family home-purchase mortgage applications by the same group in 2018.

Condo Share of Sales

The condo sale activity varies nationally and is much higher in some states (Figure 1). In 2018, the condo share of sales activity was highest in Hawaii (42%), followed by Washington D.C. (37%), Massachusetts (19%), Illinois (18%) and New Hampshire (17%). Condo sales activity varies a lot at the metro level. In 2017, 19 of the top 25 condo markets experienced increases in condo sales relative to the prior year (Figure 2).[1] However, in 2018, only six of the top 25 condo markets experienced increases in condo sales relative to the prior year. Declining affordability, tight inventory and the interest-rate rise in 2018 could have caused condo sales to cool. Among the top condo markets, Houston, Texas, had the largest annual increase in condo sales in 2018, with a gain of 7%, followed by North Port, Fla. (6%), Miami, Fla. (6%), and Minneapolis, Minn. (5%). Honolulu, Hawaii, experienced the largest annual drop in condo sales, with a decline of 29%, followed by Los Angeles, Calif. (-16%), and New York, N.Y. ( -16%). In general, the most expensive markets showed annual declines in condo sales in 2018.

Annual Percent Change in Condo Sales from a Year Ago

Given worsening affordability challenges in many markets, condos could be a viable option for many. However, the condo supply remains tight. CoreLogic MLS data show the months’ supply for condos fell to 2.6 months in December 2018, the lowest since 2000 (average of 3.3 months for 2018).[2]

Younger Millennials Will Propel Condo Demand

The younger millennials are the largest cohort and are likely to drive much of the condo demand in the coming years (Figure 3). There may be more condo demand than supply as these young millennials approach the peak household formation and homebuying age. Their values and lifestyle drive them toward buying condos because they tend to be more affordable than single-family homes and because condos typically come with a lower maintenance burden and are mostly located in urban cores. There appears to be a need for expanding condo production given the large demographic demand, the continuing strong economy and the challenge of home-buyer affordability.

[1] The 25 largest condo markets were defined at the Core Based Statistical Area (CBSA) level and determined based on total condominium sales between 2000 and 2018 according to CoreLogic.

[2] The months’ supply indicates how long it would take to sell all the current for-sale inventory (assuming no new supply hits the market) at the current sales rate.

© 2019 CoreLogic, Inc. All rights reserved.

  • Category: Blogs, Intelligence, Office of the Chief Economist
ABOUT THE AUTHOR
Archana Pradhan
Archana Pradhan
Principal, Economist, Office of the Chief Economist
View Profile

Related Posts

Tornado footprints in Southern California captured by CoreLogic's weather verification technology as viewed in CoreLogic Reactor™.
Blogs

A Rare Los Angeles Tornado and Near Hurricane-Force Winds in San Francisco

CoreLogic Weather Verification Services captured wind and tornado footprints from the severe weather system in California.

March 24, 2023
atmospheric rivers california
Core Conversations

What Was it Really Like to Live Through the California Floods? Our Team Spills

A Conversation With Kent David and Tom Larsen Since the beginning of the year, California has been drenched by atmospheric rivers. The flooding in California

March 22, 2023
Ecuador earthquake
Blogs

M6.8 Earthquake Near the Coast of Ecuador

CoreLogic estimates that insurable losses from the Ecuador earthquake will be up to $600 million.

March 21, 2023

About Corelogic

  • Newsroom
  • Leadership
  • Careers
  • Ethics & Compliance

Accounts

  • Products Sign-in

Contact

  • Sales Contact
  • Product Support

Regions

  • CoreLogic Australia
  • CoreLogic New Zealand
  • CoreLogic UK

Follow & Connect

  • Facebook
  • Instagram
  • Linkedin
  • Twitter
  • YouTube
© 2023 CoreLogic. All rights reserved.
  • Legal
  • Privacy Policy
  • CCPA
  • Cookie Preferences
  • Security
  • Sitemap
  • Accessibility
  • Legal
  • Privacy Policy
  • CCPA
  • Cookie Preferences
  • Security
  • Sitemap
  • Accessibility