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This year, the share of Gen Z buyers and sellers aged 18 to 24 made up just three percent of buyers and two percent of sellers. This shows a slight decrease from last year. Millennial buyers aged 25 to 33 years (Younger Millennials) and buyers aged 34 to 43 years (Older Millennials) make up the largest share of home buyers at 38 percent; Older Millennials at 21 percent, and Younger Millennials at 17 percent of the share of home buyers. Convenience to their job and commuting costs were both more important to buyers in this group.
Source: 2024 Home Buyers and Sellers Generational Trendspdf (National Association of REALTORS®, 2024)
Characteristics of the Millennial Generation
Millennial Homebuyers: Obstacles to Homeownership, Statistics and Tips (Bankrate, Sep. 6, 2024)
“Millennials are the largest generation in the U.S. This massive demographic was poised to reshape the housing market, but that hasn’t quite happened in the way we might’ve expected. While millennials value homeownership, high costs have hampered their ability to buy.”
Generation Gap: What It Is and Why It's Important to Business (Investopedia, Jul. 16, 2024)
Born between 1981 and 1996, millennials have always known cable TV, pagers, answering machines, laptop computers, and video games. Technological advancements in real-time media and communication have driven their expectation for immediacy. They are the generation that bridges the gap of growing up in a world before and after the Internet.
Millennial Home Buying Statistics and Trends (Rocket Homes, May 31, 2023)
“30% of Generation Zers are currently saving to purchase a home, 8% expect to inherit a home in the future and 7% don’t expect or plan to ever own a home7. 33% of millennials are currently saving to purchase a home, 7% expect to inherit a home in the future and 13% don’t expect or plan to ever own a home7.“
Meet the Average American Millennial, Who’s a Parent and Homeowner with a Net Worth of $128,000 and Hoping for Student-Debt Relief (Business Insider, May 30, 2023)
“While many millennials have managed to buy a home, they have been slow to fill them up with children. As of 2018, 55% of surveyed 22- to 37-year-old millennial women had given birth to a child, according to a Pew Research survey that spanned both Gen Z and millennials, compared to 62% of Gen X and 64% of boomers at the same age.“
Younger Buyers and Home Ownership
Many from Younger Generations Don’t Expect to Become Homeowners, Redfin Reports (Investopedia, Sep. 7, 2023)
“About one-third of Gen Z and millennials said they can’t afford monthly mortgage payments, and more than 30% said mortgage rates are too high. The average interest rate on a 30-year, fixed-rate loan was 7.18% as of the end of August, up from 5.55% a year ago and 2.87% over the same period in 2021, according to Freddie Mac.”
Working With Younger Buyers
Millennial Homebuyers Are Shocked by Closing Costs, Study Finds (National Mortgage News, Nov. 12, 2024)
“The average home buyer spends almost $32,000 in home-buying expenses, research from Clever Real Estate shows.…Out of 1,000 adults participating in the questionnaire, 39% reported that costs exceeded their budget, while 38% said this would significantly impact their savings. The age group most surprised by such costs were millennials, with 63% reporting their shock. Forty-nine percent of Gen Z responders said these expenses exceeded their budget. By comparison, a 31% share of boomers said that the cost was out of budget for them.”
Homebuyers Are Older Than Ever (The Week, Nov. 7, 2024)
“A new report from the National Association of Realtors (NAR) reveals that the median age for first-time homebuyers is now 38. That's up from 35 last year, and a new high in data going back to 1981…The average age of all homebuyers — first-timers and repeaters — has risen by six years since July 2023. That average age is now 56, up from 49 last year. A quarter of first-time buyers now need a gift or a loan from a family member or friend in order to make a down payment.”
Nepo-Homebuyers: More Than One-Third of Gen Z and Millennial Homebuyers Plan to Use Family Money For Down Payment (Redfin, Mar. 27, 2024)
According to a Redfin-commissioned survey conducted by Qualtrics in February 2024, “More than one-third (36%) of Gen Zers and millennials who plan to buy a home soon expect to receive a cash gift from family to help fund their down payment.”
Agent Strategies for Getting First-Time Homebuyers Across the Finish Line (HousingWire, Oct. 16, 2023)
Agents must work with first-time buyers to mentally get them past the current rate, which is certainly not going to last forever. We need to help them understand that they have the luxury of time. We’re not competing, and inventory out there is now up for some negotiating on things like pricing, inspection, and rate buydowns.
How to Best Serve Gen Z and Millennial Homebuyers (RealTrends, Jun. 7, 2023)
“If you want to reach millennial and Gen Z homebuyers, then you need to meet them where they are at. Start texting! Texting is easy and quick communication that feels low pressure. It allows you to easily send listing links and you can always call your clients for those detailed conversations later in the process.”
The Impact of Student Loan Debtpdf (National Association of REALTORS®, Sep. 2021)
One quarter of student loan debt holders say their debt has impacted their decision or their ability to purchase a home (29%). P. 26
What Younger Buyers Want in a Home
Condos Are the New Starter Home for Some Budget-Minded Buyers (realtor.com®, Apr. 8, 2024)
“Many young homebuyers grew up with the aspirational idea that their first property would be a starter home…It is possible that condos are becoming increasingly desirable for first-time homebuyers because they tend to be more affordable, especially in areas that have seen rapid single-family home price growth.”
Gen Z-ers Are Moving Out. Where Are They Looking to Buy Homes (The New York Times, Jun. 15, 2023)
“To conduct the study, researchers examined loan requests made by Gen Z borrowers as a percentage of the total number of requests made by platform users of all ages. Salt Lake City had the highest rate of Gen Z applicants, at 22.6 percent, said the LendingTree economist Jacob Channel, the author of the report. Up next were Oklahoma City, at 22.4 percent, and Birmingham, Ala., at 20.8 percent, followed by Indianapolis, Cincinnati, Louisville, Ky., and Minneapolis.”
Selling to Generation Y: What Millennials Want in a Home (Rocket Homes, May 23, 2023)
“Besides the costs of yard maintenance and renovations, millennials are also eager to avoid high energy bills. Homes with metal or cool roofs and energy-efficient windows are often sought by millennial buyers. By keeping the home warm in winter and cool in summer, these energy-efficient options reduce additional costs and maintenance that Generation Y doesn’t want to deal with.”
This is What Gen Z and Millennials Are Looking for in Real Estate (GO Banking Rates, Dec. 29, 2022)
“DeGisi said first-time millennial buyers are entering the market comfortable with the fact that their first home may not be their dream home. This understanding in a competitive market allows millennials to see home ownership as an opportunity to build wealth. As a result, millennials are more open to multifamily housing options, like condos and quadruplexes, as their first home.”
Top 10 Features for First-Time Home Buyers (National Association of Home Builders, Mar. 24, 2022)
A laundry room tops the list, rated essential or desirable by 83% of first-time buyers, followed by a ceiling fan and exterior lighting, each rated essential or desirable by 81%.
Books, eBooks, & Other Resources
100 Questions Every First-Time Home Buyer Should Ask (eBook)
Home Buying 101 (Audiobook)
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