It seems like yesterday millennials were all kids in braces who had barely made it out of middle school and into high school, yet today they’re young adults in their twenties and early thirties. In fact, not only are millennials growing up, but they’re also entering the home buying arena in a significant way.
They’re the Largest Group of Buyers on the Market
First, as of last year, millennials made up 35% of home buyers in the United States, which represented a 3% increase over 2014. Not only that, but for the past three years, millennials have been the largest demographic of home buyers in the country, and that trend doesn’t look to be fading out any time soon.
Over Half of Them Start Their Home Searches Online
An estimated 56% of Millennials go online when they begin their search for a home of their own. Some start by looking online for properties in their area and price range, while others look for information on real estate and the buying process to help them understand what to expect when they find a house and make an offer.
They’re Moving to the Suburbs
While many young people talk about never leaving the city centers where they work and play, we’ve seen significant number increases in millennials buying homes outside of those city centers. Not only that, but it looks as though millennials are starting to prefer the suburbs, as the number of young home buyers in central urban areas went from 21% to 17% two years ago.
They’re Not Afraid to Ask for Financial Help
While not all millennials have parents with excess cash lying around, young home buyers today aren’t afraid to get some help from family or friends. According to one study, 23% of buyers in this demographic have used a financial gift to help make the down payment on their first home.
A Lot of Them Are Waiting Longer to Buy
While millennials constitute the largest group of home buyers in the country, not all of them are buying houses right now. In fact, a lot of young professionals are waiting to buy their first homes until they are in their thirties, which is good news for real estate investors holding attractive rental properties.
Right now, millennials are the group to watch, Though they’re moving to new cities for work, they’re not afraid to buy houses in the suburbs. They make up the largest buying demographic in the country, but they’re also a significant fraction of the rental market.