Referring to people between the ages of 25-35, Millennials represent the most active generation of homebuyers (according to the National Association of Realtors). Based on a recent annual survey of homebuyers, NAR estimated that 36% of all home sales last year involved millennials. Millennials have held the top home-purchaser spot among generational groups for five consecutive years! Not only that, but Millennials represent more than two-thirds of all first-time homebuyers!
Reasons for this growth among the Millennial generation as home buyers:
• Increasingly becoming established in their careers
• Starting a family
• Desire to purchase a home of their own
Interestingly, the numbers for millennial homebuyers should be even higher. Due to a recent crunch on housing affordability, low inventories, and student loan debt, Millennials have been keen to ride the fence regarding the Rent vs. Buy decision.
Millennials
• Born 1982-2000
• Biggest demographic of homebuyers @ 42% (half of which live in suburbs)
• 56% own (28-34)
• 27% own (21-27)
• 41% rent
• 15% live at home
1% live with friends
• Earning ~20% less than baby boomers at their age
• Real Median Household Income increased 3.2% to $59,039 from ’15-‘16
• Highest level since 1999
• Refis by Millennials reached highest % since Feb ’17 in Nov ‘17
• Starter home demands are soaring as builders create new products to meet needs
