As of 2021, millennials made up about 37% of all homebuyers in the U.S., making them the largest percentage of buyers in the nation. On top of that, this younger generation is making a large impact on the homebuying market in terms of how they go about the process.
Millennial Homebuying Trends in 2021
Among millennial homebuyers, there are a few key trends that are worth paying attention to. These are the most common millennial housing trends from 2021.
Preference for Tech
First, there’s a greater preference for using technology—internet, smartphones, texting, etc.—among millennials than in previous generations, and that has had an impact on the market itself.
In terms of internet usage when searching for a home, the rate is 99% among millennials, with 65% to 70% using a mobile device to perform searches. Younger generations are also more likely to turn to online sources to learn about mortgage options and to secure financing.
Realtors Are Taking on a New Role
With millennials getting much of their information online, the role of real estate agents has shifted somewhat. Realtors used to be the primary resource for getting information on listings, but with that information being available online, their role is one more centered on access for showings, contract negotiations, and facilitating the homebuying process.
To millennials, the value of realtors stems more from their connections and ability to broker deals rather than merely being a source of information.
Desire for More Up-to-Date Homes
Finally, there’s an increased movement among millennials from cities toward suburban areas. Suburbs tend to offer more spacious and up-to-date homes, so millennial homebuyers can often afford a bigger and better home than they could in the city center. Only the very wealthiest millennials seem to be opting for city life, with 60% of those earning $250,000 or more looking to buy in urban areas to be near their parents and employers.
Tips for Millennials Buying Homes in 2022
For those of the younger generation looking to purchase a home in 2022, here are a few helpful tips to get the most out of your search.
Save for a Down Payment
First, the ideal situation is to have a down payment of at least 20%. Being able to offer a larger down payment will make it easier to get approved for a loan, not to mention make your offer more attractive to sellers.
Pay Off Existing Debt
Student debt is a massive burden, and that’s true when it comes to house shopping as well. One item that lenders look at is your debt-to-income ratio, so the less debt you have, the better your odds are of being approved for financing.
Get Preapproved for a Home Loan
It’s a seller’s market right now, so you’ll need to stand out. Getting preapproved for a loan can give you a clear sense of your budget and put you in a better negotiating position with sellers.
Keep the Process Moving
Sellers want to avoid delays, so do what you can to keep the process moving. Schedule inspections as soon as possible, keep in touch, and make sure you don’t keep sellers waiting.
Finally, be patient. It can be tough finding a home that fits your budget, and you’re likely to have multiple offers rejected. Don’t think of it as failure—it’s practice! Keep at it and get good at the process.
Frequently Asked Questions About Millennial Homebuyers
The trends among millennial homebuyers involve many facets. Here are some more tidbits of information to ponder.
What do millennials want in a home?
In general, millennials want space, low maintenance, and a great location. In addition, environmentally conscious features are major selling points.
How many millennials own homes?
The homeownership rate among millennials is estimated to be a little below 48%, meaning less than half of millennials own homes.
At what age are millennials buying houses?
Millennials buying homes are aged between 22 to 40.
Do millennials buy or rent?
While many millennials feel they will continue renting and never buy a home, there are more and more who are purchasing houses.
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