millennial home buyers

Photos: Charles Henry/Flickr

Millennials made up the biggest group of recent home buyers in the US for the second year in a row, according to a new survey from the National Association of Realtors (NAR). The 2015 Home Buyer and Seller Generational Trends study found that 32 percent of all US  home buyers were aged 34 and younger.

The demographic, also known as Generation Y, purchased more than the two segments of the Boomer population combined. Older Boomers, born between 1946 and 1954, accounted for 15 percent of home sales between July 2013 and June 2014, while younger Boomers, those born between 1955 and 1964, made up 16 percent of all buyers.

Typically, Millennials purchased a 1,720-square foot home costing $189,900. The median income for this generation was $76,900.

However, despite being the lead home buying demographic for the second year in a row, Lawrence Yun, NAR chief economist, believes the amount of Millennial buyers should be higher.

“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 downpayment. For some, even forming households of their own has been a challenge,” he said in a statement.

Debt remained a significant obstacle for would-be Millennial buyers. Compared to other demographics, Generation Y had the largest number of recent purchasers, 22 percent, who said saving for the downpayment was the most difficult task in the buying process. Among those, 50 percent indicated credit card debt had held them back while 46 percent said student debt had delayed their savings.

Regardless of demographic, Americans are typically buying houses in the suburbs, with 50 percent of those surveyed opting for the subdivision lifestyle. However, more young buyers opted for city living compared to their counterparts. According to the report, 21 percent of Gen Y buyers bought a home in an urban or central city area (the next highest percentage was among those aged 35 to 49-years old, who saw 15 percent of buyers go the city route).

Millennials may be known for their love all things internet-related and 84 percent went online when house hunting. However, a very large part of each generation turned to the web: 79 percent of Generation X, 73 percent of younger Baby Boomers, 62 percent of older Baby Boomers and 46 percent of the Silent Generation, or those aged 69 to 89.

Developments featured in this article

More Like This

Facebook Chatter