Millennials in the Marketplace

Housing markets in Summit County and all over the country are experiencing record sales. Millions of Americans want an upgraded home, a new location to call home or their first home. One of the largest emerging groups is the millennial generation.

According to the National Association of Realtors, 37% of all buyers fall into the millennial category. Millennials are currently the fastest-growing segment of home buyers and have been the largest segment of the buying market since 2014. Born between 1981-1996 (currently 25-40 years old), millennials are the largest adult generation, the most educated, have higher earnings (with incomes 2-4x higher than other age groups) and are set to inherit more wealth than any prior generation. They are also the bulk of the new remote workforce. 

The median age for millennials buying a first home is 29 which is significantly older than previous generations. Those who chose to get married and start families are also doing so later than previous generations. While the millennial “American Dream” timeline may have shifted slightly, home ownership remains a high priority and is often more important than marriage and/or children. 

There are various reasons millennials wait to purchase their first home including the rising cost of education, student debt and increasing in rent which makes saving more difficult. Pre-pandemic, some millennials placed a higher value on travel and now realize the need for owning the place they consider their home base.

The oldest millennials are turning 40 this year. They’ve paid off student debt, have a well-rounded quality of life and want more space. While many of the older millennials are buying their first home, they’re not buying starter homes. They’re going all out and checking all the boxes with high-end luxury homes, making millennials a dominant force in high-end real estate.

About 4.8 million younger millennials turn 30 this year. These Americans will be shaping the real estate market for years to come. Millennials want to take advantage of the increased buying power that low interest rates offer and start building equity.

While many millennials are ready to buy, inventory is scarce and home prices have risen sharply. New construction has been low in the past decade further hindering supply. Millennials are entering a competitive market.

Millennial Buyer Statistics: About 87% of millennials are financing their new home purchases and saved for the down payment. Although over 60% of buyers are married the percentage of single females is almost double that of single males. The biggest choice-influencing home characteristic is newer construction to avoid renovations and problems with plumbing/electricity. Among the top 10 states where millennials are moving, Texas is number one and Colorado is number two.

Ready to buy? The internet remains the number one tool in the home search process, however buyers need the assistance of a real estate professional to find the right home in a competitive market and to negotiate terms of sale and price negotiations. This is especially true for first-time buyers. We invite you to use our website breckenridgeassociates.com to launch your initial search. Email, call or stop by our office to contact one of our knowledgeable agents to guide you through the home-buying process. 


Posted by Breckenridge Associates Real Estate on
Email Send a link to post via Email

Leave A Comment

e.g. yourwebsitename.com
Please note that your email address is kept private upon posting.