Photo: Stuart Seegar/Flickr
Millennials in the US are now the largest generational group in the housing market, and the results of a new study conducted by Zillow provide insights into their home-buying preferences.
Millennials, or those people between the ages of 18 and 34, make up almost 30 percent of the population in San Diego, CA, and Austin, TX, and over 25 percent of the population of San Antonio, TX, and Columbus, OH.
And they consider owning a home part of the “American Dream,” according to Zillow. Millennial homebuyers see buying a home as a smart financial investment, perhaps even more so than Baby Boomers and Gen Xers.
However, Millennials had been delaying making the leap into buying a home, with Millennials buying their first home at the median age of 33 — compared to 29 years old a generation ago.
Last year, Millennials made up 42 percent of all homebuyers, says data from the online listing site. They outnumbered all other generations in the national homebuying market, and most were first-time buyers.
When they do buy, nearly half of all Millennial buyers are opting to skip the big cities and buy in the suburbs — only 33 percent of Millennials are buying in urban areas.
As homebuyers, Millennials are skipping traditional “starter” or entry-level homes and buying larger, more-expensive homes. They are paying a median price of $217,000 for a home.
Millennials are also staying put more than previous generations have. When they moved last year, 64 percent stayed in the same city, and only 7 percent moved out of state.
Zillow’s data also revealed that Millennial homebuyers had a lot in common with their grandparents’ generation, in that they both chose homes with shared community amenities and even considered townhouses at higher rates than other generations.
“Millennials have delayed home buying more than earlier generations, but don’t underestimate their impact on the housing market now that they’re buying,” said Jeremy Wacksman, Zillow Group’s chief marketing officer.
The homeownership rate in the US should “tick up” as Millennials grow older, Wacksman added.Millennials tend to be a lot like older generations with their views on community and homeownership, he suggested.
“They don’t all fit the urban stereotype you might have in your head,” he concluded.
Click here to read the entire report.