It appears millennials have been making the most of record low mortgage rates coupled with low inventory, as the National Association of Realtors reports that 22-40 year olds make up 37 percent of homebuyers nationally.
According NAR’s latest Home Buyers and Sellers Generational Trends report, millennials have been the largest share of buyers since NAR’s 2014 report. The most recent data shows that 82 percent of younger millennials (22-30 year olds) and 48 percent of older millennials (31-40) were first-time homebuyers, more than other age groups.
When it comes to choosing a neighborhood, 74 percent of younger millennials said proximity to work was imperative.
“The younger millennials overwhelmingly answered that they prefer to live closer to work, as many don’t want a long commute and this was evident in their buying habits,” said Jessica Lautz, NAR’s Vice President of Demographics and Behavioral Insights. “Additionally, both of these groups also placed a high value on being close to family and friends as 57 percent said that dynamic factored into what neighborhood they ultimately chose.”
The next generation—Gen Z—began taking advantage of the market as well. NAR reports that 2 percent of all buyers and sellers were from Generation Z, those under the age of 22. The largest share of home sellers were baby boomers, at 43 percent.