The millennials generation has become a growing part of house buyers today and many more of them are choosing the suburbs to live, according to a research on Generational Tendencies of Houses Buyers and Sellers, of NAR (National Association of Realtors). In addition, the survey found out that though the debt in student loans is more frequent among the millennials buyers, they are not the generation with more student debt balance.
The proportion of the millennials generation that has bought in an urban or central zone of the city was reduced to 17% (21% a year ago) in this year’s survey, and less of them (10%) bought a single-family house in comparison with a year ago. In general, most buyers from all generations keep buying single-family house in suburban areas.
Lawrence Yun, chief economist of NAR says that while the millennials generation can opt for living in an urban area as tenants, the survey reveals that most of them do not remain once the are willing to buy. “The average age of a millennials house buyer is 30 years of age which is the stage of life when they generally prepare to get married and have a family”, he said. “Inclusively, if it is an urban environment where the wish to buy their first house, the need of more space at an affordable price is the part they are interested in taking further in their search.”
Yun adds, “On the other hand, the limited inventory in the gamut of prices of the millennials, under construction level of condominium and the pressure of affordability make the purchase in the city something extremely difficult for the majority of young homes.”
For third consecutive year, the largest group of recent buyers was the millennials generation that conformed 35% of all buyers. (32% in 2014) more than the combined amount of the younger boomers and older (31%). The X Generation represented 26% of the buyers and the Silent Generation was 9%.