According to the Zillow Group Report, millennials were the generation with the largest contribution to the housing market, injecting an estimated $514 billion into the industry, despite conditions adverse conditions with inventory and affordability issues.
In all, 53 percent of younger potential homebuyers are forced to make multiple offers in order to secure their first home, and only 39 percent are able to afford the standard 20 percent down payment.
“Today, the results of the Zillow Group Report on Consumer Housing Trends 2017 show how the nation's highly competitive housing market is changing the way a new generation approaches buying a home,” the report states.
Sixty-two percent of first-time millennial homebuyers look for a rental space while shopping for a home, which indicates, according to the report, that they accept the current market conditions and understand that homeownership in today’s environment requires a secondary plan.
In the competitive home market, millennial homebuyers that want to secure a home are much more likely to go over budget than other generations, at 37 percent compared to 29 percent, even though 29 percent of millennial homebuyers received financial help from friends or family for a down payment.
"In many cities across the US, the housing market is extremely competitive, especially for first-time buyers who are looking to purchase a starter home," said Zillow Chief Economist Dr. Svenja Gudell. "Young buyers often start their careers in fast-growing cities in which the market is particularly tough – and they're trying to save for a down payment while making record-high rent payments … Whether it's searching for a rental as a Plan B, looking outside their preferred neighborhood, or cobbling together a down payment from multiple sources, these buyers are willing to try every trick in the book in order to find a place to call home."
You can see the full report here.