Millennials Not the Rent Generation

Millennials Not the Rent Generation, 

Says Realtor.com Report

By: By WPJ Staff | Source: http://www.worldpropertyjournal.com

According to Realtor.com analysis of data from comScore and current population estimates, Millennials -- who have been nicknamed the 'generation of renters' -- are proving the critics wrong this year when it comes to home buying. Almost 65 percent of millennials aged 21 to 34 looked at real estate websites and apps in August.

Additionally, when they focused on 25-34 year olds, they found that this group is 70 percent more likely than the average adult to be currently looking for a home to buy on Realtor.com.

 

This past week's new home sales data shows the most positive report so far in the housing recovery, underscoring a strong year in which total sales-to-date are up 9 percent.  "While it is difficult to estimate the effect of millennial buyers in the new home market, one can infer that since prices over the year have trended towards the more affordable, that some of the growth in the new homes market is a result of builders providing more affordable supply," said Realtor.com Chief Economist Jonathan Smoke.

 

Millennials Are Driving First-Time Home Buying

 

In August, the market share of first-time buyers of existing homes increased to 32 percent, from a July rate of 28 percent, according to National Association of Realtors (NAR). Smoke estimates that half of all home sales activity for the first half of the year can be attributed to first-time buyers and according to the NAR 2015 Home Buyer and Seller Generational Trends report, millennials comprise 68 percent of all first-time buyers.

 

"People who believe that millennials are disinterested in home ownership are grossly mistaken," said Smoke. "This generation hit the job market during one of the largest recessions of all time and they've had to work hard to establish credit and save for a down payment. With the older segment just beginning to enjoy the life events that drive home ownership - marriage and children - now is the most appropriate time for them to consider home ownership, and that's what we're seeing."

 

Indeed in a survey of active home shoppers this June and July conducted for Realtor.com through the BDX Home Shopper Insights Panel, the top triggers for being in the market for a home cited by 25-34 year old home shoppers were the following:

• Increase in income (35 percent)
• Tired of current home (34 percent)
• Favorable home prices (32 percent)
• Favorable interest rates (28 percent)
• Increasing rent (22 percent)
• Change in family circumstance/composition (20 percent)
• Planning to increase family size (19 percent)
• Increase in family size (18 percent)

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