Millennials among largest group of prospective first-time homebuyers

Millennials don’t just text and play around on social media. They also buy houses.

The National Association of Realtors® Home Buyer and Seller Generational Trends reports that consumers born between 1980 and 1995 – also known as Millennials or Generation Y – are the largest group of prospective first-time homebuyers.

Lawrence Yun, NAR chief economist, said the Millennial generation is now entering the peak period when people typically buy a first home. “Given that Millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand. Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people,” he said.  “However, the challenges of tight credit, limited inventory, eroding affordability and high debt loads have limited the capacity of young people to own.”

Even with tighter market conditions, millennials have formed the largest percentage of recent buyers at 31 percent. Generation X –  those born between 1965 and 1979 – followed closely at 30 percent.

The report sheds some light on Millennials’ expectations and shows that this age group continues to see homeownership as a good investment.

They want to own property:
 Generation Y buyers represent the largest group of recent homebuyers (31 percent) and the largest group of first-time buyers (76 percent), according to the report. In fact, 87 percent of buyers younger than 33 considered their purchase a good financial investment.

They talk to Realtors®: 
While Millennials are likely to use the Internet to find professional recommendations, that’s not necessarily the case when purchasing a home. The report found that younger buyers were predominantly referred to their real estate professional by a friend, neighbor, or relative.

They want real estate information on their smartphones:
 More than half of young buyers reported using a mobile device during their home search and looking online for properties first during the home buying process. Members of Generation Y are also most likely to search online for general information about the homebuying process.