Millennials purchasing homes more than any other generation

More than one-third of homes on the market were purchased by millennials in the last year.

This was an increase of 2 percent, according to the National Association of Realtors® 2018 Home Buyer and Seller Generational Trends study, up from 34 percent in 2017.  The typical millennial homebuyer had a higher household income at $88,200, up $6,000 from 2017, but also spent more on a home, $220,000, up $15,000 for the same square footage, 1,800 square feet. Eighty-five percent of millennials bought a detached, single-family home.

More millennials, 52 percent, have at least one child, up 3 percent from last year and 9 percent from 2015. Fifty-two percent of millennials purchased a house in suburbs, while only 15 percent bought a house in an urban area. Ninety percent of millennials used a Realtor®, the most likely of any age group.

“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,” said Lawrence Yun, NAR’s chief economist. “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.”

Not surprisingly, Generation X was the second generation most likely to be homebuyers, at 26 percent. The survey found that 15 percent of Generation X purchased homes for multi-generations, whether it be adult children or aging parents.

Across generations, the most important feature was the quality of the neighborhoods, and closeness to friends and family was also important, especially to millennials.