[1]Millennials are the largest group of recent home buyers for the second consecutive year, according to the 2015 National Association of Realtors Home Buyer and Seller Generational Trends [2] study. The survey also found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent, while Millennials are using agents more than any other group.
The study found the largest group of recent buyers was the millennial generation, those 34 and younger, who composed 32 percent of all buyers. Generation X, ages 35-49, was closely behind with a 27 percent share.
“Over 80 percent of Millennial and Gen X buyers consider their home purchase a good financial investment, and the desire to own a home of their own was the top reason given by Millennials for their purchase,” NAR [3] Chief Economist Lawrence Yun said in a press release. “Fixed monthly payments and the long-term financial stability homeownership can provide are attractive to young adults despite them witnessing the housing downturn and subsequent slow recovery in the early years of their adulthood.”
The median age of millennial homebuyers was 29, their median income was $76,900 and they typically bought a 1,720-square foot home costing $189,900. The typical Gen X buyer was 41 years old, had a median income of $104,600 and purchased a 1,890-square foot home costing $250,000. When asked about the primary reason for purchasing a home, a desire to own a home of their own was highest among Millennials at 39 percent. Younger boomers were the most likely to buy because of a job-related relocation or move, and a change in a family situation, most likely the birth of a child, was the highest among Gen X buyers.
Regardless of their age, buyers used a wide variety of resources in searching for a home, with the Internet at 88 percent and real estate agents at 87 percent topping the list. Millennials were the most likely to use a real estate agent, mobile or tablet applications, and mobile or tablet search engines during their search.
NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Arkansas, said the survey results highlight the need for the knowledge and expertise of a Realtor, despite the wide popularity of the internet.
“Nothing can replace the real insights and guidance Realtors deliver to help consumers navigate the complex buying and selling process,” he said.
The share of Millennials buying in an urban or central city area increased to 21 percent in the past year. Millennials were most influenced by the quality of the neighborhood and convenience to jobs when buying home, according to the survey. Millennials were also the largest group to finance their homes.