Millennial Housing Boom: Key Insights

Millennials, known as Generation Y, are significantly influencing communities across the United States. Born between 1980 and 1995, this group represents 31% of all new home and condo sales, as highlighted by the 2014 National Association of Realtors Home Buyer and Seller Generational Trends study. Here is a clearer picture:

1. A Generational Surge

This is the most substantial generation since the Baby Boomers. Individuals aged 33 and under are poised to make a considerable impact nationwide and within their local communities. Experts anticipate that over the next five years, 8.3 million new households will be established by Millennials. With $1.6 trillion spent on home purchases and $600 billion on rent, this generation represents a significant economic force.

2. An Ownership Mindset

Millennials have a strong inclination towards homeownership. According to a National Association of Realtors report, 87% of recent buyers aged 33 and below believe that purchasing a home or condo is a sound financial investment. Around half of these buyers prefer owning to renting, highlighting their commitment to property ownership.

3. Long-term Commitment

This generation is not one to buy and quickly sell homes. A substantial 87% of Millennial homebuyers plan to stay in their homes for an average of ten years. They possess the financial capability to secure mortgages, with a median income for this group reported at $73,600.

4. Heading Westward

Millennials are gravitating towards specific regions, primarily moving away from the Eastern states. According to the NAR, desirable markets for Millennials include cities such as Austin, Dallas, Denver, Des Moines, Grand Rapids, Minneapolis, New Orleans, Ogden, Salt Lake City, and Seattle. Although Washington, D.C., and Raleigh, NC offer some appeal, most of the attractive markets are situated in the West or Midwest.

5. Mobile-First Approach

It's well-known that Millennials heavily depend on their mobile devices, a trend confirmed by data. More than half of Gen Y homebuyers used mobile devices during their home search, making this generation the highest percentage of buyers to find their purchased home via a mobile device at 26%. Unsurprisingly, all generations, from Millennials to Boomers, report the Internet as their initial step in the home-buying process.

6. Dominating First-time Purchases

As expected, younger buyers report the greatest number of first-time home purchases. Generation Y holds the largest share of first-time homebuyers, accounting for 76%. Millennials are undeniably redefining the home-buying landscape and shaping communities. Recognizing a generation that's eager to set down roots and values home ownership, yet prefers digital interactions over face-to-face ones, can help communities develop strategies to engage with Millennials effectively. These individuals are now the adults shaping our neighborhoods.