Millennials are defined generationally as the group of children born between the years of 1981 and 2000. This generation is unfairly characterized as lazy and entitled, and as likely to live at home with parents well into adulthood. (that part has some truth to it)
However, millennials now account for half of homeowners under 36 and half of sellers under 41.
As they have become thirty-somethings, they have decided to become homeowners. Because this generation does live at home longer than previous generations, they are normally more stable and have higher incomes when they enter the housing market. And they have more money saved to purchase these homes, so in more and more cases, they are skipping the traditional starter home for more expensive models.
Interestingly, the amount of millennials choosing to buy in small towns equals the number buying in urban areas at around 15 percent. The vast majority of those purchasing homes are married with only a little more than 10 percent of singles purchasing, and this is mostly comprised of millennial women.
That this group is highly nomadic is really more anecdotal than true because the data does not reveal this to be the case. With this generation as with prior generations, as they age and become parents with families, purchasing homes become more necessary. And this is a significant driver in the housing market. Some forecasts missed this because they assumed participation in the sharing economy meant this group would shun home ownership but turns out they are much like earlier generations.
They prioritize the quality of their neighborhoods as well as their neighborhood’s proximity to workplaces and resale value. Other significant selling points are school quality, and proximity to family and friends. probably the biggest change is Millennials find their homes differently than any previous generation. Practically all millennials employ online real estate resources not only in finding an actual home but also in navigating the loan process. Almost seventy five percent of those that start their search online eventually use the services of a real agent. In the end they have more choices than previous generations because the market is willing to cater to their needs unlike previous generations who expected to have to choose only from what was in front of them.