With the recent avocado toast controversy in the news, it may surprise some to know that Millennials continue to make up the largest group of homebuyers. In a recent NBC News article, Herb Weisbaum breaks down the home shopping and buying trends of this diverse group.
Millennials are growing up, settling down and looking to buy a house — for the extra room and the investment opportunity.
Millennials were the largest group of home buyers (34 percent) for the fourth consecutive year, according to NAR’s 2017 Home Buyer and Seller Generational Trends study. By comparison, baby boomers were 30 percent of buyers.
“That myth that millennials don’t want to own things is not true,” said Jeremy Wacksman, chief marketing officer at the Zillow Group. “Millennials are not just starting to buy homes; they’re powering the housing market.”
The Millennial Buyer
Most millennials are first-time buyers. In many parts of the country, they’re dealing with a hot housing market where home prices are soaring and supply is limited. And even though they are typically two-income families, home prices are outpacing wage growth.
Millennials are focused on being able to afford their purchase. They want a property that is well within their budget, real estate experts told NBC News.
Jacob Berg, a 33 year old bookkeeper, and Bianca Rose, a 27 year old insurance agent, recently bought a home in Valencia, California. It took them a year to find the right place: a small house (900 sq. ft.) with two bedrooms, two bathrooms and a two-car garage. They paid $430,000 for it — a price that was well within their comfort zone.
“We didn’t take into consideration having good jobs,” Berg said. “Unforeseen things can go wrong. If we had to go get a minimum-wage job, we would still be able to afford to make our house payments.”
Berg and Rose see their new house as a step up from living in an apartment, as well as a long-term investment. They hope to rent it out some day and move to a bigger place.
Read the full article: Who’s Powering the Housing Market? Surprise! It’s Millennials