Millennials prove their buying force has arrived
CHICAGO – March 4, 2019 – A new study from Realtor.com shows that millennials account for 42 percent of all new-home loans, surpassing baby boomers and Generation X.
"Millennials are getting older, with better jobs and deeper pockets, allowing them to expand their collective purchase power and hence, their footprint in the market," says Javier Vivas, director of economic research at Realtor.com. "The stereotype that millennials primarily choose to buy homes and live in large metro areas isn't the reality. Results show millennials' expansion is more heavily conditioned by affordability than in prior years, so their eyes are set on less traditional secondary markets where homes and jobs are now available and plentiful."
The study found that millennials have a median purchase price of $238,000, compared with $289,000 for Gen Xers and $264,000 for baby boomers.
However, millennials are increasing their purchase price at a faster rate, which the study says is "indicative of this generation starting to move beyond starter homes."
In addition, millennials' downpayments averaged 8.8 percent in December 2018, compared to 11.9 percent for Generation X and 17.7 percent for baby boomers.
The study found that the top five markets where millennials now generate more than 50 percent of mortgages and where their share grew by more than 4 percent are Buffalo, New York; Pittsburgh, Pennsylvania; Milwaukee, Wisconsin; Cincinnati, Ohio; and Columbus, Ohio.
Source: Realtor (02/19) and realtor.com
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