Buyers 36 and younger were 34 percent of all homebuyers in 2016, and 66 percent of all first-time buyers, both the highest rates when compared with other generations.
NAR’s Economists’ Outlook blog provides a snapshot of the Millennial homebuyer. The group was the most likely to purchase in the suburbs or a subdivision at 57 percent. Among the most popular reasons for choosing a certain home were quality of the neighborhood, convenience to a job, and overall affordability.
With a median household income of $82,000, Millennials purchased the least expensive homes compared to other generations, at a median price of $205,000. They also bought the smallest homes, with a median square footage of 1,800.
Millennials are the most likely to finance their home purchase at 98 percent. The median percent financed is 93 percent, the highest share among the generations. Millennials are the most likely to use savings (75 percent) and a gift or loan from a friend or relative (29 percent) as the source of their downpayment.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development