While first-time buyers aren’t a one-size-fits all group, they typically fall in a younger age category. The number of homeowners below the age of 35 has increased exponentially over the last several years. Millennials, who were previously more inclined to rent, seem to be warming up to the housing market and are ready to buy.
So who qualifies as a millennial? A millennial is anyone born between 1981 and 1996. These buyers are between 22 and 37 years old. They are establishing themselves in the job market, getting married, and settling down to start families.
As they inch closer to paying off their student debts and have begun to save enough for a down payment, millennials are approaching the housing market with a long list of demands. You can bet these buyers will do lots of online research before they choose a Realtor and ultimately a home.
What makes them different from other home buyers is that they know what they want in their first home and are not often willing to compromise. Millennial home-buying trends show that these buyers want to move to more suburban areas, away from city centers.
According to the National Association of Realtors®, millennials are interested in buying homes that are move-in ready. They aren’t interested in taking on major renovations or paying additional money to upgrade their homes.
This group prefers homes with open floor plans, energy efficient appliances and smaller yards that are easier to maintain.
But while millennials may want brand new and move-in ready, their buying power is still low, and they likely won’t be able to afford some of the larger or more luxurious homes on the market.