For those selling your home, you may have seen an influx in Generation Y, or “Millennial” buyers flocking to your open house in recent years. Yet, with the most recent U.S. Census confirming that Millennials have surpassed the Baby Boomers, it’s no surprise the number of Millennial home buyers is on the rise.
So what does this mean for the housing market? According to Realtor.org, “For the third straight year, the largest group of recent buyers were Millennials, who composed 35% of all buyers, more than the combined amount of younger and older Baby Boomers at 31%”.
Millennials are a new brand of home buyer. Contrary to previous generations, Millennials are delaying marriage and family to a later time in life. Whereas, home buying is at the forefront of their priorities. Seen as a smart investment, these young purchasers are seeking the stability and security of home ownership.
In most markets, Millennials are finding that renting is more expensive than buying – even after considering the fees and taxes associated with buying a home. By paying on a mortgage rather than monthly rent, they are not only saving money, but allowing for more flexibility in their lifestyle. As Casey Bond with GO Banking Rates states, “When you own your home, you can stay as long as you like. You can have pets. You can paint your living room hot pink.” There’s no worry of losing your security deposit or relying on someone else to maintain the property.
With special programs for first time home buyers, there is less stress associated with a down payment. By taking advantage of FHA backed loans, Energy Efficient Mortgage programs among many others, Millennials were able to finance their purchase with a median down payment of just 7 percent.
For those considering buying your first home, revisiting your finances, evaluating your housing needs and contacting a trusted Realtor will start you off in that direction!