Report: Older Millennials Make Up Largest Share of Home Buyers
- Apr 02, 2019
Older Millennials and Gen Xers are the most active generational groups when it comes to home buying, according to a report released by the National Association of Realtors. The organization just released the 2019 Home Buyer and Seller Generational Trends study, which found that older Millennials (born between 1980 and 1989) make up 26 percent of recent home buyers, while Gen Xers make up 24 percent.
Both younger and older Millennials made up 37 percent of all buyers, once again making the generation the most active home buyers for the sixth consecutive year, according to NAR. Meanwhile, one in six Gen Xers bought a multi-generational home, surpassing younger Baby Boomers as the generation most likely to do so. Of the Gen X multi-generational buyers, 52 percent said they did so to accommodate adult children who moved back home or never left.
“The high cost of rent and lack of affordable housing inventory is sending adult children back to their parents’ homes either out of necessity or an attempt to save money,” said Lawrence Yun, NAR Chief Economist, in prepared remarks.
The report, which was based on a July 2018 NAR survey, also found that student loan debt has continued to be a barrier to homeownership for older Millennials and Gen Xers, who carry the most student debt with a median amount of $30,000. Younger Millennials report saving for a down payment as the most difficult task in the home buying process, with student loan debt accounting for the biggest reason for the delay. However, younger Millennials are also the generation most likely to receive help from family members with a down payment, so the delay is only a median time of two years.
Among those buying homes, single buyers and unmarried couples have continued to make gains on the real estate market, in a marked shift from what has historically been mostly married couples. Most notably, single women accounted for 25 percent of all young boomers and silent generation buyers. As a whole, 8 percent of home buyers were unmarried couples, but they accounted for 20 percent of all younger Millennial home buyers.
“Many of these buyers are entering the market after a divorce, which is the case for younger boomers, or the death of a spouse in the case of those in the silent generation,” said Yun, in prepared remarks.