Millennials Aging Into Major Players in Real Estate Market

The National Association of Realtors’ annual survey of recent home buyers highlights the growing influence of Gen Y, also known as the millennials. Home buyers in this demographic group are by far the largest first-time buyers in the survey, at 78 percent. “Given that millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand,” says NAR chief economist Lawrence Yun. Still, he listed tight credit, limited inventory, eroding affordability, and high debt loads as challenges for young home buyers. Millennials were largely optimistic about their decision, with 87 percent under age 33 considering it a good financial investment. Millennial home buyers were on average 29 years old with a median income of $73,600, and they tended to buy older homes averaging 1,800 square feet and costing $180,000. | Read More