Millennials have grown in number as homebuyers, according to the 2016 Home Buyer and Seller Trends study. According to the report, many of them have purchased single-family homes on the outskirts of urban areas. The survey further discovered that although student loan debt is prevalent among millennial buyers, they are not the generation with the biggest debt balances.
The percentage of millennials buying in central city areas had decreased dramatically to just 17 percent this year. Only 10 percent of purchased multi-family homes were made, compared to the figures gathered in 2015. As a whole, the majority of buyers from all generations continue to buy single-family homes in suburban areas, and the younger buyers opt to purchase older homes, according to a report from the Boston Globe.
Lawrence Yun, NAR chief economist , said that while millennials may opt to live in urban areas as renters, the survey revealed that most are not staying once they are ready to buy. He said that the median age of a homebuyer is 30 years old, which is typically the time in life where one settles down to to raise a family. He continued by explaining that even if an urban setting will more likely be where millennials buy their first home, the need for more space at a cheap price is pushing their search outwards.
Yun added that the limited inventory in the millennial price range, minimal entry-level property construction and price pressures make home buying in the city difficult for young households, Market Watch reported.
For the third year in a row, the biggest group of buyers were millennials, who made up 35 percent of all buyers, which is greater than the combined amount of older boomers.
The Millennial buyer's ability to purchase a home and the challenges that come with it have been underlined in this year's survey. While debt delayed down payment for four years for all buyers, the number of years increased from six years for older boomers to three years for millennials.