The recently released 2014 National Association of REALTORS® (NAR) Home Buyer and Seller Generational Trends study reveals high confidence levels in the housing market. Especially notable, 87% of Millennials who were recent buyers consider their home a good financial investment.
Millennials, aged 34 and younger, are entering the period in which many people purchase their first homes. Lawrence Yun, NAR chief economist, said, “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 aspirations and the long-term investment aspect to owning a home remain solid amoung young people.” Millennials do face some challenges still, including tight credit, limited inventory, waning affordability and high debt loads. In fact, 56% of Millennials who took longer to save for a down payment cited student loan debt as their largest obstacle.
Even with these tighter market conditions, Millennials (born between 1980 and 1995) formed the largest percentage of recent buyers at 31%. Falling just behind is Generation X at 30%. Earlier generations, especially the Silent Generation at 9%, made up smaller portions of recent buyers.
A trend in recent years, 14% of all home purchase were by a multi-generational household, largely concentrated among middle age buyers. Of the Young Boomers (born between 1955-1964), 22% are multi-generational households.
To learn more about home buying practices among all generations, read the NAR study analysis here, or talk to your Shorewest real estate agent, who is always ready to answer your home buying and selling questions.
Tags: baby boomers, buying a home, Generation X, generational trends, generations, Home Buyers, Home Buying, millennials, multi-generational housing, National Association of Realtors, real estate news, real estate trends, Realtors