A new survey reveals millennials are moving to the suburbs when they are ready to buy homes. The 2016 National Association of Realtors® Home Buyer and Seller Generational Trends study (released in March) reveals that the Millennial* generation is buying homes more than ever before and 51 percent of them are buying homes in the ‘burbs.
Lawrence Yun, NAR chief economist, says while millennials may choose to live in an urban area as renters, the survey reveals that most aren’t staying once they’re ready to buy. “The median age of a millennial homebuyer is 30 years old, which typically is the time in life where one settles down to marry and raise a family,” he said. “Even if an urban setting is where they’d like to buy their first home, the need for more space at an affordable price is for the most part pushing their search further out.”
“Furthermore, limited inventory in millennials’ price range, minimal entry-level condo construction and affordability pressures make buying in the city extremely difficult for most young households.” – Yun
Key Millennial home buyer stats from the report:
- 35% of all home buyers (up 3%)
- Median age – 30
- Median income – $77,400
- Households
- 55% of Millennial households have no children
- 20% one child
- 25% have more than one child
- Ethnicities
- 86% white
- 8% African American
- 5% Asian
- Previous residence
- 22% owned a previous home
- 58% were renters
- 18% were living at home
- Primary reason for buying – desire to own their own home (48%)
- Preferences – neighborhood quality, commute time, affordability, and convenience key attributes
- Where they buy
- 51% of millennials buying in the suburbs
- 32% in small town or rural
- 17% urban (down 4% YOY)
- Median price of new home –$187,400
- Median sq. ft. – 1,720
- Median beds/baths – 3/2
- New home purchasers – 11%
- 8% purchased a multi-generational home
