Millennial homebuyers will be the next great source of housing demand; what traits set them apart from other generations?
The National Association of Realtors’ Home Buyer and Seller Generational Trends report is among the more detailed homebuyer surveys out there, and it provides integral information about homebuyers’ motivations and interests.
So, in our first story on the report (expect at least a couple more in the coming days), we’re looking at Millennials, that generation of American consumers aged 33 and younger.
Here are the seven main takeaways from NAR’s report, some of which may surprise you:
1. Millennials are Quite Present – We often see reports that Millennials are missing in action, but interestingly, they actually make up the largest share of homebuyers at 31 percent (compared to 30 percent for Generation X, the second most prevalent).
2. Small is Beautiful – Millennials tend to start small in their homeownership adventures, with the typical home purchase being an 1,800-square-foot house costing $180,000; also, the median age of Millennials buyers is 29, and their median income is $73,600.
3. Student Loans Persist – Unsurprisingly, student debt is still an issue with Millennials; indeed, among the 20 percent who took longer to save for their downpayment, 56 percent said that student loans were their biggest obstacle.
4. Urban Dwellers – Similarly unsurprising, Millennials were the most urban of the generations, with 19 percent purchasing a home in an urban/central city area (compared to 12 percent of older Baby Boomers); also, 87 percent of Millennials purchased an existing residence.
5. Mom/Pop Shops – Sixty-two percent of Millennials moved from apartments to homeownership, but 20 percent lived with their parents, friends or relatives prior to the move.
6. Quality and Commuting are Key – The two more important factors when choosing a home, in Millennials’ minds, were the quality of the surrounding neighborhood and commuting costs (the latter was cited by 37 percent of Millennials).
7. They Love Homeownership – Of all the reasons to own a home, Millennials cited the simple desire of homeownership the most; furthermore, 87 percent think that their home is a good investment.