Stay in Mom’s Basement? Nope!
Millennials Were 2014’s Top Home Buyers, Says NAR (National Association of Realtors)
If you’ve ever read anything about millennials, you’d be forgiven for thinking they’re shiftless, underemployed ne’er-do-wells with no intention of ever moving out of their parents’ basements. But the truth is millennials are home buyers. In fact, they made up the largest percentage of home buyers in 2014.
Millennials—that is, adults 34 and younger—accounted for 32% of all home purchases last year, according to the 2015 National Association of Realtors® Home Buyer and Seller Generational Trends study. In fact, the median age of a millennial home buyer was 29, with a median income of $76,900. What’s more, millennials were most likely to buy with their unmarried partner.
What’s driving all the home buying? Life. Many young people are employed and having babies. Therefore, they need space. Also, with rising rent, buying a home and locking in a fixed payment for the next 30 years makes good financial sense, to those who can afford to buy. According to the report, millennials, like the majority of buyers, purchased a single-family home in the suburbs. They are nesting.
Even after witnessing the recession, seeing their parents lose their homes, and suffering the indignity of low employment rates, millennials are coming out on top. Those who were employed saved their money and were able to use Federal Housing Administration low-down-payment loans to gain a foothold. Still, a full quarter of young buyers depended on their parents for down payment assistance, according to the report, compared to 15% for Generation X, those aged 35 to 49.
Millennials entering the housing market is a good thing for both the economy and neighborhood stability, but the share of first-time buyers is still at its lowest level since 1987, according to NAR.
“The return of first-time buyers to normal levels will eventually take place in upcoming years as those living with their parents are likely to form households of their own, first as renters and then eventually as homeowners,” said Lawrence Yun, NAR’s chief economist.
From the Basement to First Time Home Ownership
Partners Real Estate Professionals has great faith in our younger community members. They are learning that they can invest through owning vs.renting, and many times paying less per month. Partners has many young clients they have helped to get into their first homes. “It is always such a pleasure to work with our first time home buyers”, says John MacLeod, Broker/Owner of Partners Real Estate Professionals. John is also the current President of Livingston County Association of Realtors. He is very much present within the local community, often spending time with first time home buyers, answering questions…”if only to help educate our neighbors for their future real estate endeavors, this is valuable time spent”.
Forbes presents…We anticipate a higher number of new listings, in part because more houses have appreciated in value. Now that prices have risen, homeowners have regained equity in their properties and are ready to test the market.
Looking to Sell, or Looking to Buy… Let us help you determine if now is the right time.
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