The millennials comprise the highest percentage of homebuyers, which means that most real estate agents are always on the lookout for this generation's needs and wants. A recent report reveals that the millennials are now choosing to live in the suburbs rather than getting a home in the city.
A report from the National Association of Realtors shows that majority of millennial homebuyers bought properties in the suburbs, Realtor.com stated. The report was based on the housing data from July 2014 to June 2015, alongside the income data in 2014.
This surprising trend among millennial homebuyers is said to be because of the rising prices of houses in the city along with a number of multiple factors.
"The suburbs offer millennials [and everyone else] more affordable homes," said the publication's chief economist Jonathan Smoke.
Aside from the higher prices of homes in the cities, Realtor.com noted that the millennials are also finding a hard time saving up for the down payment.
"It's often the largest financial challenge to a first-time home buyer to come up with all the funds that are necessary," Smoke added.
The majority of the millennials stated that they are having a hard time saving up for the down payment because of their student debts and rising prices of rents across the U.S. This meant that their finances are constricted by a number of factors, which make them unable to buy a house of their own in today's market and conditions.
However, as previously reported here on Realty Today, a recently proposed bill aims to provide renters with tax breaks.
The said bill would offer tax breaks for individuals who are renting their homes in the same way that tax breaks are being offered to homeowners in the U.S. If the bill gets passed on as a law, then this would pave the way into helping more millennials save up for the down payment on their own house.
