Translate

Friday, March 11, 2016

Millennials are beginning to accept the suburbs.


In the past, the younger generation was looking to more to a more metropolitan area and avoiding a commute.  While still popular, the millennial generation has broken that trend and are now moving into the suburbs.  
The share of millennials buying in an urban or central city area decreased to 17 percent (21 percent a year ago) in this year's survey, and fewer (10 percent) purchased a multifamily home compared to a year ago (15 percent). Overall, the majority of buyers in all generations prefers a single-family home in a suburban area – and the younger the buyer, the older the home they purchased.
"The median age of a millennial home buyer is 30 years old, which typically is the time in life where one settles down to marry and raise a family," says Lawrence Yun, NAR chief economist. "Even if an urban setting is where (millennials) 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," Yun adds.
Millennials made up the largest group of recent buyers at 35 percent (32 percent in 2014) 
In order to pay for the home , the median down payment ranged from 7 percent for millennial buyers to 21 percent for older boomers and the Silent Generation. Nearly a quarter (23 percent) of millennials cited a gift from a relative or friend – typically their parents – as a source of their down payment.
Characteristics of buyers
Millennial home buyers median income this year was $77,400 ($76,900 in 2014), and they typically bought a 1,720-square foot home costing $187,400 ($180,900 a year ago). The typical Gen X buyer was 42 years old, had a median income of $104,700 ($104,600 a year ago) and typically purchased the largest home compared to other generations (2,200-square feet), at a cost of $263,200 ($250,000 last year).
Generation X buyers (71 percent) were the most likely to be married, younger boomers had the highest share of single female buyers (20 percent), and 12 percent of millennial buyers were unmarried couples.
The millennial generation's primary reason to buy? They want a home of their own, according to 48 percent (39 percent a year ago). The desire for a larger home was highest among Gen X buyers (16 percent), and older boomers (20 percent) were most likely to buy because of retirement.
Gen X buyers represented the largest share of single-family home buyers at 89 percent (85 percent a year ago), and younger boomers were most likely to purchase a townhouse or row house (9 percent). A combined 3 percent of millennial buyers bought an apartment, condo or duplex in a building with two or more units (7 percent a year ago).

Please read the full article to all information.

For property tax assistance (very important the first year of ownership) please contact us at www.PTAGflorida.com