Millennials Continue to Set the Pace in Real Estate
Millennials continue to make headlines in real estate news this month, as the National Association of Realtors 2015 Home Buyer and Seller Generational Trends reports that the millennial generation (ages 34 and younger) comprised 32 percent of all buyers. Generation X (ages 35-49) made up 27 percent.
The report also showed that millennials were heavily dependent on the Internet and mobile apps for their home search, but ultimately enlisted the services of an agent to find and complete the sale. Gen-X homebuyers relied on open houses in their searches. The up and coming generation is also buying their first homes at a younger age (29) as opposed to gen-xers who purchased their homes at 41 years old. Millennials are also less likely (compared to other generations) to be married when purchasing their first home.
“Over 80 percent of millennial and gen-x buyers consider their home purchase a good financial investment, and the desire to own a home of their own was the top reason given by millennials for their purchase,” Lawrence Yun, chief economist for NAR, said. “Fixed monthly payments and the long-term financial stability homeownership can provide are attractive to young adults despite them witnessing the housing downturn and subsequent slow recovery in the early years of their adulthood.”
What influenced millennials the most in their purchase? Quality of neighborhood and convenience to jobs. And while suburban areas saw the highest activity in sales among all generations, there was an uptick in millennials moving to urban areas as well.
Gen-Xers made up the largest segment of those selling homes (27 percent) with older baby boomers making up 23 percent.