With the real estate market slowing down from its wild pandemic highs, people’s attention has shifted to the next generation of home-buyers; Millennials. Born between 1981 and 1996, Millennials now make up 43% of our nation’s home-buyers, more than any other current generation.
There was a dramatic increase of Millennial home-buyers that joined the market in 2022, a 37% increase from 2021. Many Millennials previously postponed buying houses for many different reasons, two of which included student loan debt and not earning enough money to afford what they wanted in the current housing market. Millennials are also inheriting wealth from their parents and grandparents in older generations, giving them more money to spend on a home.
Generation X, the group born between 1965 and 1980, is the most likely generation to buy the more expensive homes on the real estate market. Many of this generation have put aside money throughout the years and were also less affected by the Recession in the early 2000s, making it easier for them to afford the house of their dreams. Many in Generation X bought affordable homes that kept close to their budget and generally chose smaller homes since they no longer had family living with them; while Millennials with families purchased larger homes.
Younger Millennials are often buying cheaper homes and waiting longer to purchase them, saving money and paying off their debts while they wait. These Millennials are also starting families later in life, lessening the need for a home of their own. Many of this generation rent for years before looking into buying their first home.
The real estate market has changed over the years to stay up with the growing usage of technology in business, and Millennials take full advantage of it. 1 in 3 Millennials used a website or online app to find their homes in the past few years, and some bought their homes online without having seen them in person.
With so many people continuing to work from home, many buyers in the past few years bought houses in suburban or small-town areas, and it seems big cities are no longer the top places to live in the U.S. Younger home-buyers, such as Millennials, moved shorter distances away from where they previously lived and older generations often moved further to be near family and friends. Most buyers expect to live in their new homes for around 10-12 years.
If you’re in the Millennial generation and looking to buy your first home, we are at your service! We can help you find the house that will be perfect for you and your family and well within your budget.