Posted 03/20/2018

by Aly J. Yale

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter

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Millennial homebuyers make waves, stick near friends and family

millennial homebuyers

Aly J. Yale

The Mortgage Reports Contributor

Location matters

Though Millennials may be known as tech-savvy disruptors to many, data shows they’re more traditional than most think. In fact, according to the National Association of Realtors, Millennial homebuyers consider proximity to friends and family more of a factor than either Generation Xers or young Baby Boomers.

Verify your new rate (Jul 19th, 2018)

Millennials keep close

It seems staying close to home is a priority for many Millennials. According to NAR’s 2018 Home Buyer and Seller Generational Trends Report, 43 percent of recent Millennials homebuyers said “convenience to friends and family” was a major factor in their decision. Only 27 percent of Gen Xers said proximity to loved ones was important, while a mere 24 percent of buyers 72 to 92 made it a priority.

Homebuying trends: Millenials are more conventional than you think

According to Lawrence Yun, NAR’s chief economist, the Millennial penchant for buying near family may have something to do with having kids themselves.

“Similar to Gen X buyers who have their parents living at home, Millennial buyers with kids may seek the convenience of having family nearby to help raise their family,” Yun said.

Millennial homebuyers also cited affordability, convenience to their job, quality of school district and convenience to schools as important factors. Proximity to airports, health facilities and public transport ranked low on the list.

Verify your new rate (Jul 19th, 2018)

More Millennials, more savings

The NAR report also revealed that Millennials now make more than a third of the nation’s homebuyers at 36 percent. Sixty-five percent of those buyers were first-timers, with an average household income of $88,200.

Despite nearly half having student debt, Millennial homebuyers are trending toward medium-sized homes around 1,800 square feet with a price around $220,000. Most say saving for a down payment is their biggest hurdle to home buying.

According to Yun, high competition is forcing these younger buyers to save more than in years’ past.

“Realtors throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy,” Yun said. “Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy.”

Hope for Millennials? The 15 best states for today’s young buyers

Get today’s mortgage rates

Mortgage rates are at historical lows. Want to get in on the market and join the Millennial homeowner ranks? Shop around and see what rates you qualify for today.

Verify your new rate (Jul 19th, 2018)

 

Aly J. Yale

The Mortgage Reports Contributor

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

2018 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)