Even though there are a range of religions surrounding Millennials, they actually make up a fairly significant part of the economy. More importantly, their economic advantage as a group seems to be increasing by the day.
As of 2019, Millennials make up approximately 37 percent of home buyers… that’s a bigger share than any other generation, such as Baby Boomers! So what exactly are these Millennials purchasing, and what trends are increasing along with their increasing representation on the market?
Approximately 52 percent of Millennials who are buying homes are first-time home buyers. This makes sense for younger Millennials, but older Millennials who were born in the 80s still observe a significant variety of first-time buyers.
Before buying, a large number of these Millennials were renting homes. By buying homes, they can enjoy the benefits of ownership and build equity for similar amounts (or in some cases, less) than they had been paying each month in rent .
A high percentage of home-buying Millennials are purchasing single-family homes. This is in part because over 50 percent of them are either married or in long-term relationships; in fact, in 2018 there were far more married couples among home-buying Millennials than there were in any other generational group that was at the market for a house.
A drastic amount of Millennials also have kids under the age of 18 living at home, further increasing the need for a family-friendly home.
Motivation to Purchase
The majority of Millennials who have purchased homes within the last year did so simply because they wanted to get a home of their own. Some wanted to own a larger home, be closer to friends and family or were moving due to job relocation, but the general desire to get a home was listed as a reason for purchasing by as many Millennials as ones that gave all other reasons combined.
A lot of this came down into the opportunities that were current as well; over 50 percent of Millennials report that it was”just the ideal time” to buy a home, while the next most common reason (that they did not have much option and had to buy when they did) was only reported by around 10 to 15 percent of Millennials.
Back into the Suburbs
One big trend among Millennial home buyers is that they were buying homes in the suburbs. This wasn’t confined only to Millennials, either; 51 percent of all homes purchased in 2018 were located in suburban areas or subdivisions.
The Millennials fell pretty near this statistic, with small towns being the 2nd most frequent location. A vast majority of these homes were formerly possessed; though there have been a variety of new subdivisions constructed around the country in recent years, just a small percentage of Millennials are buying in to them.
There are a number of factors that affected the purchasing decisions of Millennials. The existence of public transit or closeness to function was one major factor, together with many Millennials attempting to minimize commuting costs. Heating and cooling efficiency also played an important role.
In general, Millennials were more willing to compromise on price than a home’s condition, but only around 20 percent were willing to compromise on the distance of their new home from work.
Home Shopping Trends
By far, the majority of Millennials started their home search by searching on the internet to try and find properties for sale. Around 15 percent spent much more time online than that, starting their search by researching the ins and outs of the home purchasing process before starting to look at properties.
Beyond online sources, Millennials trusted real estate agents and Realtors the most for information about homes for sale. The entire process took about 10 weeks on average before finding the home they wanted to purchase, though a real estate agent was included for the last 7 or so weeks of the search.