According to a survey conducted by the National Association of Realtors (NAR), millennials, often categorized as a generation of renters, have begun making the shift to purchasing homes. Most of these homes, unlike the apartments they often rent, are in the suburbs rather than in urban areas. The 2016 Home Buyer and Seller Generational Trends Report shows that as millennials age, their home buying habits become more traditional.
In 2015, about 35 percent of all homebuyers fell within the millennial generation (those born between the early 1980s and the early 2000s). The NAR’s survey revealed that the average millennial homebuyer was thirty years old. Generation X (those born between the late 1960s and early 1980s) made up the second highest group of homebuyers with 26 percent of the market. Their average age was 42.
Overall, the number of millennials purchasing homes was up a small amount since 2014, when 32 percent of homebuyers belonged to that generation.
The report also showed that millennials are moving away from urban areas. While 21 percent lived in urban areas in 2014, that number dropped to 17 percent in 2015. Several factors could contribute to this, including the higher home prices in urban areas and the need for a larger amount of space. Most millennials (and, in fact, most buyers overall) are purchasing single-family homes. Many are also making smaller down payments, putting down an average of just 7 percent.
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