The Millennials Next Door

Blog posted On November 10, 2016

Market analysts have a lot to say about Millennials, but did you know they may be moving in next door?  Zillow recently reported that about half of new home buyers are under the age of 36.  The current housing market is saturated with first-timers with 47% buying and 63% selling a home for the first time.

How are the children of the recession (largely discounted as still living with their parents and weighted with more student loan debt than previous generation) transitioning to home ownership?  Time Magazine reports that on average first-time buyers spend around $200,000, about 18% less than previous generations, on their first home purchase.  They are also shopping smaller, with the average home sized at 1,800 square feet vs. the 2000+ square feet preferred by Gen-Xers and Baby Boomers.

As the real estate market evolves, Millennials are diving in.  Zillow’s Chief Marketing Officer Jeremy Wacksman reports that they, “are doing things differently: they juggle shopping for homes to buy and rent at the same time, and they bring deep research and their vast social networks to the process.” 

Millennials are not only shaping the current housing market; they are changing it.  With their technology preferences and tendencies to wait a little longer, the housing market is evolving to keep up.  They start the home shopping process online and are seeking smaller, more efficient spaces. 

If you are in the market for your first home, check out our Home Purchase Calculators and other digital resources.

Sources: RISMedia, Time, HousingWire