Younger Generations Confident in Housing Purchases
Home buyers falling under the Millenial generation are more confident about their recent real estate purchases than older generations, according to a report by the National Association of Realtors.
Eighty-five percent of buyers under the age of 32 thought that their most recent housing purchase was a good decision. Paul Bishop, NAR vice president of research, chalks it up to younger families’ continued belief that home ownership is one of the best ways to accumulate wealth.
“The sheer size of the Millennial generation, the largest in history after baby boomers, is expected to give a powerful boost to long-run housing demand, though in the short-term mortgage accessibility and student debt repayment remain challenges,” said Bishop.
A few more interesting comparisons of home buying between the Millenial generation and older generations:
– 90% of Millenials searched for homes online; more than half of the Silent Generation preferred the use of a real estate agent
– Millenials are more likely to find listings on their own and then use a real estate agent for advice about the buying process
– Median age of Millenial home buyers: 28, Gen X buyers: 39
– Median income of Millenial buyers: $66,200, Gen X buyers: $93,100
– Typical purchase by Millenials: 1700 sqft home at $165,000, Gen X: 2100 sqft home at $235,000
– Median down payment for Millenials: 5%, Gen X: 8%, Silent Generation: 22%
– Kelly Ann Blanchard