The reasons are threefold: lifestyle changes, space and affordability.
Lawrence Yun, NAR chief economist, puts it best: “The median age of a millennial homebuyer is 30 years old, which typically is the time in life where one settles down to marry and raise a family,” he said. “Even if an urban setting is where they’d like to buy their first home, the need for more space at an affordable price is for the most part pushing their search further out. Furthermore, limited inventory in millennials’ price range, minimal entry-level condo construction and affordability pressures make buying in the city extremely difficult for most young households.”
What else did the survey reveal about recent millennial buyers? Check out some of the key findings below:
Age – 30 years old
HH income – $77,400
Home size – 1,720 sq. ft.
Year of home built – 1984
Cost – $187,400 (millennials)
Type of home – only 10 percent of millennials bought a multifamily home
Median down payment – 7 percent
23 percent cited a gift from a relative or friend as a source of their down payment
Millennials were most likely to cite student debt (53 percent) as the debt that delayed saving
87 percent used an agent to buy a home
Millennials’ desire to own a home of their own as the primary reason for their purchase increased to 48 percent (39 percent a year ago)