Millennials are more confident than any other age group that their recent home purchase was a good financial investment, according to a new study from the National Association of Realtors® (NAR).
By Diana Dietz
The 2013 National Association of Realtors® Home Buyer and Seller Generational Trends examined the general differences of recent home buyers and sellers. While eight out of 10 recent buyers considered their home purchase a good financial investment, the number was even higher, 85 percent, for buyers under the age of 32.
“The oldest of the Millennial generation are now entering the years in which people typically buy a first home, and despite the recent downturn, homeownership still matters to them,” said Paul Bishop, NAR vice president of research, in a statement. “The sheer size of the Millennial generation, the largest in history after baby boomers, is expected to give a powerful boost to long-run housing demand, though in the short term mortgage accessibility and student debt repayment remain challenges.”
The study found that the median age of a Millennial home buyer was 28, earning a median income of $66,200, and they typically bought a 1,700-sqaure foot home costing $165,000. The typical Gen X buyer was 39 years old with a median income of $93,100, and they purchased a 2,100-square foot home costing $235,000.
Nearly two-thirds of Millennials (65 percent) rented an apartment or house before buying a home and 22 percent lived with their parents, relatives or friends. Meanwhile, more than half of baby boomers and Silent Generation buyers owned their previous residence.
Younger buyers typically bought older homes built around 1986 in an urban or central city location, usually within 10 miles of their previous residence, and they generally purchased a home because they wanted a place of their own. When choosing a neighborhood, younger buyers cited convenience to jobs, affordability of homes and quality schools, and a majority of them found the home they purchased through the Internet.
Meanwhile, older buyers bought newer homes built around 1996 and moved longer distances of more than 20 miles from their previous residence. They usually purchased a home to be closer to their family and friends, and looked for a location with easy access to health care facilities. Older buyers learned about the home they purchased from their real estate agent.
For additional commentary on the home buying habits of Millennials, watch this video from NAR.
|About Diana Dietz:
Diana Dietz is the Multimedia Journalist at the Pennsylvania Association of Realtors(R)
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