Interesting research about how Millennials buy homes. New NAHB research shows that millennials tend to buy homes that are smaller, older and less expensive than homes bought by older generations. Being the youngest home buyers with little or no accumulated wealth also affects how millennials shop for and buy their homes.
(View a Dec. 10 Fox Business news report where NAHB CEO Jerry Howard discusses millennial home buyers and the housing landscape.)
The majority of millennials are buying homes for the first time in their lives. Three out of four millennials who purchased a home were first-time buyers, but a quarter traded their existing homes.
Compared to older generations, millennials are less likely to buy a new home. Less than 9% of millennial home buyers bought a new home. The share was close to 12% among older home buyers.
More than two-thirds of millennials who bought homes purchased single-family detached properties. Nevertheless, compared to older home buyers, the millennial generation shows a slightly higher preference for multifamily condominiums. Close to 9% of millennial home buyers bought a multifamily property compared to less than 6% of older home buyers.
Consistent with being the youngest and largely first-time home buyers, millennials tend to buy homes that on average are smaller and concentrated in the lower price ranges compared to homes purchased by older generations. Half of all homes purchased by millennials averaged less than 1,650 square feet of living space and cost less than $148,500.