Over the past year the share of millennial home buyers has increased significantly with the combined share of younger millennial buyers (23 to 31 years old) and older millennial buyers (32 to 41 years old) rising 43% since 2021, according to an National Association of Realtors® (NAR) report.
Millennials now have the highest percentage of home ownership compared to any generation. The key factor of this rise is that millennials have reached the age of the average home buyer.
Along with that, millennials were able to use the pandemic to their advantage by paying down debt and moving in with family to cut out paying for rent.
Young adults have the tools to find the perfect home for their financial situation with the ability to utilize the internet and social media. More young buyers are using real estate agents, which makes it much easier to find what they are looking for.
Four out of five younger millennial home buyers are purchasing for the first time, according to NAR’s report. Only 48% of older millennial buyers were first-time buyers.
While millennials are the largest share of home buyers, boomers are the largest share of home sellers at 42%, according to NAR.
Millennial sellers increased from 22% to 26% over the last year. When it came to moving, NAR’s report showed that younger generations tended to move shorter distances when relocating, with the median being 10 miles for younger millennials.
Younger millennials have the highest share of student debt at 45%, with a median amount of $28,000, according to NAR.
Despite student debt, they have a positive outlook on homeownership. Eighty-six percent of all buyers reported to the National Association of Realtors® that they viewed a home purchase as a good investment.
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