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 (Feb 24th, 2020)
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.
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 (Feb 24th, 2020)
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.”
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 (Feb 24th, 2020)