The millennial generation, those ages 34 and younger, was the largest group of recent homebuyers, according to the 2015 National Association of Realtors® Home Buyer and Seller Generational Trends study. This is the second year millennials have garnered the largest percentage, 32 percent, which was one percent higher than the previous 12-month period. Generation X, those ages 35-49, was a close second with 27 percent.
“Many millennials have endured underemployment and subpar wage growth, and rising rents and repaying student debt have made it very difficult to save for a down payment. For some, even forming households of their own has been a challenge,” said NAR chief economist Lawrence Yun. However, “Fixed monthly payments and the long-term financial stability homeownership can provide are attractive to young adults, despite them witnessing the housing downturn and subsequent slow recovery in the early years of their adulthood.”
Yun said that over 80 percent of millennial and Gen X buyers consider their home purchase a good financial investment. He said the survey results show an untapped demand for homeownership among young adults, especially as millennials enter the peak buying period and are soon expected to surpass boomers in total population.
Millennials also were tops for using a real estate agent in conjunction with mobile/tablet applications and mobile/tablet search engines.
Millennial and Gen X Profiles
The median age of millennial homebuyers was 29, and the median income was $76,900. Typically, millennials bought a 1,720-square foot home that cost $189,900.
The typical Gen X buyer was 41, with a median income of $104,600, and purchased a 1,890-square foot home that cost $250,000.