LendingTree Study Finds Denver, Los Angeles, and Portland, Ore. Have the Most Competitive Homebuyers in the U.S.
- Share of buyers shopping for a mortgage before identifying the house they want
- Average down payment percentage
- Percentage of buyers who have good or excellent credit (above 680)
These criteria were chosen because the average American cannot afford to pay cash for a home — this means that most Americans need good credit to secure a loan, and enough cash to be able to make a substantial down payment. A more competitive buyer has higher credit and the ability to put down larger down payments.
Key Findings:
Denver ,Los Angeles , andPortland, Ore. , have the most competitive buyers in the country. Buyers in these areas have higher than average credit and the ability to put down a larger down payment.Birmingham, Ala. ,Virginia Beach, Va. , andPittsburgh have the least competitive buyers in the country. Living in a less competitive market can be beneficial for buyers as it means that the path to homeownership is less challenging than it is in other parts of the country. For example, in these three areas, only 43 percent of mortgage shoppers had prime credit, compared to an average of 49 percent across the 50 largest metros in the U.S.- The most competitive buyers live out west. Of the top 10 most competitive cities, only two,
St. Louis andBoston , were not in a western U.S. state. High-paying tech jobs, common in places likeOregon ,San Francisco andSeattle , likely help fuel market competitiveness in some western cities. - The average down payment percent in the top 10 most competitive metros is 16 percent, two points higher than the average down payment percent found across all the cities looked at in this study. As the housing market cools, this number may fall somewhat, as sellers and lenders accommodate more potential buyers.
- Sixty-three percent of buyers in the 10 most competitive metros shopped around for a mortgage before settling on a house. Shopping around for a mortgage can not only help buyers save money — it can also help them become pre-approved for a mortgage, which makes it easier to purchase a home.
- Fifty-seven percent of buyers in the 10 most competitive metros have good or excellent credit. Across the 50 largest metros in the country, that number is only 49 percent. People who live in more competitive areas should make sure that they carefully monitor and maintain their credit scores.
Metropolitan areas with the most competitive buyers in the U.S.:
Share of buyers who shopped around for a mortgage before settling on a house: 67%
Share of buyers with good or excellent credit: 56%
Average down payment: 16%
Share of buyers who shopped around for a mortgage before settling on a house: 64%
Share of buyers with good or excellent credit: 55%
Average down payment: 17%
Share of buyers who shopped around for a mortgage before settling on a house: 65%
Share of buyers with good or excellent credit: 57%
Average down payment: 15%
"The spring housing market should see more homes on the market than last year, but inventory is still less abundant than historical norms," said Tendayi Kapfidze, Chief Economist at
To view the full report, visit www.lendingtree.com/home/mortgage/most-competitive-housing-markets.
50 Largest Metros Ranked by Most Competitive Housing Markets |
||||
Rank |
Metro |
% of buyers |
% of buyers |
Average down |
1 |
Denver |
67% |
56% |
16% |
2 |
Los Angeles |
64% |
55% |
17% |
3 |
Portland, Ore. |
65% |
57% |
15% |
4 |
San Francisco |
62% |
59% |
17% |
5 |
San Jose, Calif. |
61% |
65% |
19% |
6 |
St. Louis |
65% |
54% |
15% |
7 |
Las Vegas |
66% |
52% |
14% |
8 |
Seattle |
59% |
65% |
19% |
9 |
Sacramento, Calif. |
65% |
50% |
15% |
10 |
Boston |
60% |
57% |
16% |
11 |
Minneapolis |
63% |
58% |
14% |
12 |
Phoenix |
64% |
48% |
15% |
13 |
Milwaukee |
63% |
52% |
14% |
14 |
San Antonio |
63% |
55% |
14% |
15 |
New York |
55% |
58% |
17% |
16 |
Austin, Texas |
59% |
54% |
16% |
17 |
Miami |
60% |
49% |
16% |
18 |
Nashville, Tenn. |
62% |
50% |
14% |
19 |
Washington |
59% |
58% |
14% |
20 |
Raleigh, N.C. |
59% |
53% |
14% |
21 |
Kansas City, Mo. |
64% |
49% |
13% |
22 |
Tampa, Fla. |
61% |
46% |
14% |
23 |
Charlotte, N.C. |
59% |
45% |
14% |
24 |
Dallas |
64% |
42% |
14% |
25 |
Columbus, Ohio |
62% |
51% |
12% |
26 |
Providence, R.I. |
60% |
50% |
13% |
27 |
Orlando, Fla. |
62% |
45% |
14% |
28 |
Riverside, Calif. |
62% |
44% |
14% |
29 |
Hartford, Conn. |
54% |
54% |
14% |
30 |
Baltimore |
60% |
49% |
13% |
31 |
Chicago |
59% |
47% |
14% |
32 |
Buffalo, N.Y. |
59% |
48% |
14% |
33 |
Atlanta |
63% |
40% |
13% |
34 |
Houston |
59% |
43% |
14% |
35 |
Jacksonville, Fla. |
61% |
43% |
13% |
36 |
Detroit |
61% |
41% |
14% |
37 |
Cleveland |
59% |
52% |
13% |
38 |
Oklahoma City |
59% |
48% |
13% |
39 |
Philadelphia |
58% |
45% |
14% |
40 |
Richmond, Va. |
57% |
51% |
13% |
41 |
San Diego |
63% |
39% |
12% |
42 |
Louisville, Ky. |
61% |
42% |
13% |
43 |
Memphis, Tenn. |
63% |
38% |
12% |
44 |
Cincinnati |
59% |
48% |
13% |
45 |
Indianapolis |
60% |
39% |
13% |
46 |
Salt Lake City |
59% |
46% |
12% |
47 |
New Orleans |
59% |
39% |
14% |
48 |
Pittsburgh |
55% |
45% |
13% |
49 |
Virginia Beach, Va. |
58% |
47% |
12% |
50 |
Birmingham, Ala. |
59% |
36% |
12% |
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