The Millennial Takes Flight
Millennials have long been flocking to city centers and urban areas, but as they age and look toward homeownership, the city may not be where they choose to stay. In a trend reversal, young buyers are increasingly looking for homes in the suburbs and small towns.
The number of millennial buyers who bought a home in a city center or urban area dropped this year from 21 to 19 percent. Instead, they are opting for the suburbs and small towns, where their purchases are up 2 and 3 percent, respectively. And only 10 percent bought condos, down from 15 percent a year ago.
While it may mark a shift in where millennials are looking to buy, its not necessarily that these urban areas have lost favor with the generation. Lawrence Yun, chief economist at the National Association of REALTORS®, explains: “Even if an urban setting is where they’d like to buy their first home, the need for more space at an affordable price is for the most part pushing their search farther out. Furthermore, limited inventory in millennials’ price range, minimal entry-level condo construction and affordability pressures make buying in the city extremely difficult for most young households.”
For the third straight year, millennial homebuyers made up the largest chunk of homebuyers—35 percent, edging out Gen X (26 percent), boomers (31 percent) and the silent generation (just 9 percent).
Millennials also rely on the expertise of a REALTOR® when buying a home. Their search may start online, but for 87 percent of millennials, it ends under the wing of an experienced real estate professional.
