As the millennial generation ages, their preferences are evolving.
According to the National Association of Realtors® 2017 Homebuyer and Seller Generational Trends study, 49 percent of millennial homebuyers have at least one child, up 4 percent from last year and 6 percent from 2015. Approximately two-thirds are married, comparable to previous years.
With a growing family, less millennials are choosing city life when buying. Only 15 percent choose to buy in the city, down 2 percent from 2016 and 6 percent from two years ago. Two-thirds of millennials who purchased in the past year are first-time homebuyers.
Eighty-five percent said homes are a good investment.
“Millennial buyers, at 85 percent, were the most likely generation to view their home purchase as a good financial investment,” said NAR Chief Economist Lawrence Yun. “These strong feelings bode well for even greater demand in the future as more millennials settle down and begin raising families. A significant boost in new and existing inventory will go a long way to ensuring the opportunity is there for more of them to reach the market.”
However, the survey also found that younger baby boomers are more apt to consider their millennial children when they are purchasing a home, with 20 percent purchasing a multi-generational home, and 30 percent reporting it was because their adult children had never left or were moving back home.
Millennials have made up the largest generation of homebuyers since the report’s inception in 2013. More than 90 percent of millennials searched for a home online, and 90 percent reported they purchased a home using an agent.
“Online and mobile technology is increasingly giving consumers a glut of real estate data at their disposal,” said NAR President William E. Brown. “However, at the end of the day, buyers and sellers of all ages — but especially younger and often DIY-minded consumers — seek and value a Realtors®’ ability to dissect this information and use their expertise and market insights to coach buyers and sellers through the complexities of a real estate transaction.”