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.
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