Millennials: What they are buying and why

Millennials seem to be a tough market to figure out. Are they buying? Are they not buying? Do they prefer renting?

Millennials represent a quarter of the United States’ population, so what they are deciding in regards to their housing is having an impact on the industry.

According to UpNest’s recently-released What the Real Estate Industry Should Know About Millennials, millennials make up 32 percent of the country’s home buying market, and 68 percent of first-time homebuyers.

However, millennials struggle with student loan debt, expensive rent and lower-paying jobs. Millennials have also delayed marriage and children, which has delayed their desire to purchase a home.

Currently, 50 percent of millennials rent, 26 percent own, 21 percent live with family and 3 percent live in student or military housing.

However, when millennials are house hunting, they are most likely to use an agent to find a home, with 90 percent doing so. And of those 90 percent? Sixty-eight percent only interviewed one agent. When looking for an agent, millennials said they wanted honesty, trustworthiness and reputation.

Ninety-four percent used websites and 89 percent used an agent to look for homes. On websites, 88 percent of millennials said photos were most important, followed by detailed information about the home (83 percent).

When buying a home, 39 percent of millennials said the desire to own a home was the biggest reason, followed by desire for a larger home (7 percent). Millennials are most concerned about the cost of housing, neighborhood safety, proximity to work and community when they are purchasing.

In the home, millennials are typically looking for laundry rooms, exterior lighting, energy-efficient appliances, storage options, a living room and a front porch.

Nearly half of millennials want to live in the suburbs, while 21 percent prefer and urban area/city. Seventeen percent are looking to buy in a small town.

The median millennial homebuyer is 29 years old, with an income of $76,900. Their typical median home purchase is a home with 1,720 square feet for $189,900. Eighty-four percent view a home purchase as a good financial investment.

There are 81.1 million millennials in the United States, and 61 percent have attended college. In addition to being the most educated generation, millennials are also the most diverse, with 44.2 percent belonging to a minority race or an ethnic group.

By 2025, millennials are expected to make up 75 percent of the workforce, as they currently represent the largest labor force, with 53.5 million members.