Millennials had been postponing marriage and living in with their parents longer, but now they are buying houses in more significant numbers. Many of the older millennials are buying their “forever home” not the entry-level home of the past. They are buying more substantial, more expensive houses where they will raise families and grow old.
Rather than purchasing homes while in their twenties, millennials are often waiting till their thirties. Because they are living with their parents for longer and getting better jobs, they have more money to put aside and save for that larger home. The trend of buying a starter home for a year or two and moving onto something bigger is in the past. An added reason is simply the shortage of more traditional starter homes in the market.
Lawrence Yun, the chief economist of the National Association of Realtors (NAR), says that there is no hard and fast rule as to what a starter home is but notes that a one, two or even three bedrooms in the range of $150,000 to $200, 000 would be the standard.
Among millennials born in the 1980’s and 1990’s, thirty percent this year bought homes for $300,000. That is an increase of 14% from 2013, according to reports by the National Association of Realtors.
Millennials, in fact, are purchasing more homes than any other generation. They made up 36% of home buyers last year, up from 32% in 2013, NAR figures show.
The norm was once to stay in a starter home. The trend of buying forever homes early has since replaced that. We would love to help you find it!