by RE-Insideron October 13, 2015
Comment young people smiling over white background A recent survey from realtor.com looks to dispel the myth that Millennials are a generation of renters. In response to a survey they conducted, realtor.com Chief Economist, Jonathan Smoke, claims that Millennials are no different than previous generations in homebuying, delaying homebuying decisions by no more than a year or two beyond the habits of Generation X of Baby Boomers.
Almost 65% of millennials aged 21 to 34 looked at real estate websites and apps in August, according to realtor.com analysis of data from comScore and current population estimates.
“Additionally, when we focus on 25-34 year olds we find that this group is 70% more likely than the average adult to be currently looking for a home to buy on realtor.com,” Smoke says. “While it is difficult to estimate the effect of millennial buyers in the new home market, one can infer that since prices over the year have trended towards the more affordable, that some of the growth in the new homes market is a result of builders providing more affordable supply.”
In August, the market share of first-time buyers of existing homes increased to 32%, from a July rate of 28%, according to National Association of Realtors.
Smoke estimates that half of all home sales activity for the first half of the year can be attributed to first-time buyers and according to the NAR 2015 Home Buyer and Seller Generational Trends report, Millennials comprise 68% of all first-time buyers.
A survey of active home shoppers this June and July conducted for realtor.com says the top triggers for being in the market for a home cited by 25-34 year old home shoppers were the following:
Increase in income (35%)
Tired of current home (34%)
Favorable home prices (32%)
Favorable interest rates (28%)
Increasing rent (22%)
Change in family circumstance/composition (20%)
Planning to increase family size (19%)
Increase in family size (18%)
“Despite the increased role of Millennials in the housing market, setbacks still exist and are preventing first timers from making even more of an impact,” says Smoke. “As inventory returns to more normal levels, expect the blooming of millennial home buyers to turn into a boom.”