By contrast, Generation Xers (born between 1965 and 1979) were more concerned with location, design features, and size, and purchased the most expensive single-family houses at a median price of $320,000, according to the report. Gen Zers were also the most likely to relocate for job opportunities. Boomers (born between 1946 and 1964) on average bought the newest homes and moved the farthest distance, a median of 35 miles.
All of which is to say that it appears millennials are prioritizing mental health and family time over long commutes and snazzy home designs.
How will this trend in millennials change the future of America’s metros?
Due in part to the issue with housing affordability and the emergence of remote working (as well as solid job markets), Sun Belt metros are being touted as regions where millennial homebuyers are likely to flock. Rather than New York, Boston, Chicago, San Francisco, or L.A., states like Colorado, Utah, and Arizona are expected to see an influx. The warm weather suburbs of Austin and Dallas, both in Texas, Raleigh and Charlotte in North Carolina, and Miami, Tampa, and Jacksonville in Florida are also expected to draw younger homebuyers. These areas are not only affordable and warm, but they are brimming with new construction and top-tier school systems, and are ideal for older family members and retirement communities.
What are the influencing factors and results of millennial home buying trends?
Younger millennials (those born between 1990 and 1998) bought the lowest-priced homes of any generation in 2019 at a median of $206,300. The reason for this shift in trend is likely due to lower incomes, inventory-led affordability, and student debt. Younger millennials also bought the smallest homes (median square feet: 1,600), and with a median build date of 1978, the oldest. Ninety-six percent (96%) of younger millennials financed their home purchase, with a median down payment of 8%.
Commuting costs appeared to be more top of mind to millennials than previous generations, with 45% citing it as an influencing factor. And more than other generation surveyed, millennials were more likely to compromise in the house they bought, usually with price and condition. Millennials’ time in the house was also the shortest, at 10 years. Only the silent generation was comparable. Ninety-two percent (92%) of millennials were most likely to use a real estate broker or agent to help guide them through the homebuying process.