While they began to become homeowners at a more advanced age than many of their predecessors and encountered an abnormally high number of obstacles getting there, Millennials are now driving the housing market. The 2022 Home Buyer and Seller Generational Trends report from the National Association of Realtors® (NAR) says the Millennial bloc, now aged 23 to 41, are accounting for more transactions than any other age group , 43 percent of home sales, up from 37 percent a year earlier. NAR also found that first-time home buying among younger generations is on the rise, with over 4 out of 5 younger Millennials, those 31 and younger, purchasing for the first time. Just under half of older Millennials were first timers. Baby Boomers made up largest share of home sellers at 42 percent although the percentage of Millennial sellers is on the rise, increasing 4 percentage point to 26 percent over the past year. It is now more likely for an older millennial (aged 32 to 41) to a first-time seller than a first-time buyer. Debt is a problem for many homeowners and the report says those in Gen X (now 42 to 56) and younger boomers (those below age 65) delayed heir home purchase the longest (5 years) due to debt. Younger Millennials had the highest share of student debt at 45 percent and a median amount of $28,000. Twenty-seven percent of younger Millennials said saving for a down payment was the most challenging step in the home buying process and nearly one in three received down payment help in the form of a gift or loan from a friend or relative. One-quarter lived with friends or family to save on rental costs.

Published On: March 24, 2022 / Categories: Mortgage News /