Millennials are Still Buying Homes, Regardless of the Myths
Many myths are floating around out there talking about how Millennials are not buying homes. These myths are false. Last year, Millennials actually became one of the top groups of buyers representing about 35% of the real estate market, according to a report from the National Association of Realtors.
Millennials are defined as anybody born between 1980 and 2005. About 65% of the millennials buying homes in 2018 were first-time home buyers. The report from the NAR also showed how mobile the Millennial buyers are as they are not afraid to move to a new location.
In addition to these stats, the report showed younger buyers becoming more interested in older homes to renovate and live in. These homes are being sold mostly by baby boomers as the baby boomer generation moves to urban condos and active adult communities.
Why Millennials Buyers are Taking Over the Market
The biggest obstacle for Millennial buyers has been student loans. Even with student debt levels, Millennials are not more settled into careers and have savings routines allowing them some financial comfort for the future. Most contribute to a 401k regularly and other types of investments.
Due to this balance between debt and savings, many Millennial buyers are finally in a position to afford a home. Many are even using their general savings or retirement accounts as down payments on their first homes.
Millennials Look for Help When Searching for a Home
While Millennials are very familiar with technology and rely on it quite a bit, they don't rely on it as much for finding the right home. Unlike other generations that hop online and start a search for the perfect home, Millennials don't lean as much towards the do-it-yourself approach to searching for a home.
Only 40% of Millennials admitted their first step in the home search was to search the online listings. In addition, only 43% believed the virtual tours were very useful. These percentages are much higher for other major buying age groups compared to Millennial buyers.
The Starter Home is Dead with Millennials
Another interesting thing the NAR report and other reports are showing is that the starter home doesn't really exist for Millennials. This group of buyers is less interested in the starter home approach than other generations of home buyers.
Instead, they are more likely to buy their first home and stay for a much longer amount of time compared to a parent or an older sibling. While Millennial buyers are not afraid to move to a new location, when they do, they have no plans to leave that location any time soon.
You can read all the myths out there about how Millennials aren't buying homes, but they are now all false. While they may have been true a few years ago, 2018 showed the Millennial buyer starting to take over the market and become a force. It's not far more common for Millennials to buy a home than it has been in the past.