A recent survey from the NAR shows that Millennial buyers are rising to account for the largest portion of purchases in 2014. Additionally, they are more likely to use a real estate agent when purchasing.
The 2015 Home Buyer and Seller Generational Trends study performed by NAR discovered that the biggest group of buyers were actually of the Millennial generation—ages 34 and younger—accounting for 32% of all buyers. Falling just behind, Generation X made up 27% of all buyers—ages 35-49. Baby Boomers, ages 50-69, accounted for about half as many buyers as Millennials, while the Silent Generation, ages 69-89, accounted for 10% of all buyers.
NAR chief economist, Lawrence Yun, stated, “Over 80 percent of Millennial and Gen X buyers consider their home purchase a good financial investment, and the desire to own a home of their own was the top reason given by Millennials for their purchase. Fixed monthly payments and the long-term financial stability homeownership can provide are attractive to young adults despite them witnessing the housing downturn and subsequent slow recovery in the early years of their adulthood.”
If not for the number of barriers one must surpass to purchase, Yun believes even more Millennials would become real estate buyers in today’s market.
Yun said, “Many Millennials have endured underemployment and subpar wage growth, and rising rents and repaying student debt have made it very difficult to save for a down payment. For some, even forming households of their own has been a challenge.”