Why MILLENNIALS are the largest buying group?!
Posted by Hawkins-Poe on February 11, 2023
Millennials [ages 23-41, average first time home buyer age in the US; 33] are currently the largest buyer group in the real estate market. This generation has surpassed the Baby Boomers as the dominant group of home buyers, accounting for about 43% of all home purchases in the United States. There are several reasons for this trend, including:
- Stable Job Market: With the job market stabilizing and many millennials reaching their prime earning years, they are now more financially secure and able to invest in real estate. Millennials are the most educated: 90% of younger millennials have at least an associates degree.
- Growing Family Needs: As millennials age and start families, their housing needs change. They are looking for larger homes that can accommodate their families and provide them with the space they need.
- Technology: Millennials are the most tech-savvy generation and they expect to have access to technology in all aspects of their lives, including the home-buying process. From online home search portals to virtual tours, they are using technology to make informed decisions about their home purchases.
- Affordability: The current real estate market is everchanging but overall affordable for many millennials, with [historically] lower interest rates and their higher paying careers.
- Homeownership as a Priority: Many millennials view homeownership as a critical step towards financial stability and security. They see it as an investment in their future and a way to build wealth for themselves and their families.
What is going on with the other generations? ---
- In 2022, Boomers made up the largest share of home sellers at 42%. Why?! One word: DOWNSIZE! They have the larger homes that the growing millennials need.
- Gen X had the highest incomes and bought the most expensive and second-largest homes; they were also the most likely to purchase multi-generational homes.
I find these stats so interesting - it’s like the circle of life within the real estate world. The generations play a huge role in keeping the market moving. There will always be a need to make some moves; whether it be downsizing for the older gens, relocating due to job changes, bigger homes for the growing households, lifestyle changes, etc etc. The market is ever-changing and very situational- the question always is, when is it the right time for YOU! I linked some data below if you’re interested in reading more or give me a call to chat how this relates to you!
- As always, Don't hesitate to reach out with any additional questions you may have! I would love to help you navigate the world of Real Estate -
Take care,
Lauren | 253.208.9297 | laurenvigus@hawkinspoe.com
