Millennials have not been an easy generation to dissect in terms of consumerism, and the world of real estate has been no exception. Their homeownership habits have been sporadic and have had marketers and sellers stumped. However, as Millennials are quickly entering adulthood, their home purchasing trends have become easier to pinpoint. Here are some facts you need to know about Millennial homebuyers.
Who are Millennials?
Millennials make up the largest generation in history to date. This is reflected in real estate — 36% of all homebuyers are Millennials and 65% of all first-time homebuyers are Millennials. Traditionally, people go to college, become renters, and then purchase a home. This process has been pushed back for Millennials; moving back home with parents is a popular trend as multi-generational living becomes more common. In addition, they tend to wait longer to get married and start a family. However, they are now entering the peak age range (25-45) to purchase a home.
What does a Millennial homebuyer look like?
The good news is, 85% of Millennials believe investing in real estate is a good idea. According to the 2018 Homebuyer and Seller Generational Trends Report by the National Association of Realtors, 48% of Millennial homebuyers end up deciding to purchase a home simply because they have the desire to finally own their own home. Although they wait longer to buy a home, 56% of Millennial buyers are following the tradition of buying a home after previously renting an apartment or house.
For Millennials, wedding bells are a good indicator that a home purchase is on the horizon. In fact, 66% of Millennial homebuyers are married couples. The average household income of this generation is $88,200. Traditionally, first-time homebuyers seek out 1- or 2-bedroom homes. However, since Millennials are waiting longer and tend to wait until after marriage to purchase a house, many are seeking out their “forever” home right off-the-bat with more space. This could also be due to the fact that 52% of buyers have children younger than 18 that they need to have space for.
Historically, Millennials have been somewhat ghostly in the real estate market. This has been due to factors such as tendencies toward caution, delayed marriage, job scarcity and the desire to move back home. However, Millennials are starting to show up in the real estate market, and they’re excited to get the keys to their first (and possibly “forever”) home.
Are you in search of your forever home? Contact a Homewood Homes sales representative today!
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