According to a National Association of REALTORS (NAR) report, Millennials are the largest generational group of homebuyers and have been for the last three years in a row. This suggests that Millennial home buying preferences are likely to have a significant impact on real estate markets across the nation. Moreover, recent data shows that Millennial homebuyers rely on real estate agents at a higher rate than other generational cohorts.
35 percent of homebuyers belong to the Millennial cohort
The Millennial cohort makes up 35 percent of real estate buyers and is the largest generational group in our current markets. Per a recent generational trends report conducted by NAR, 67 percent of Millennial buyers are also first-time homebuyers. The latest data indicates that Millennials are most likely to purchase single-family detached homes, which made up 83 percent of all homes purchases analyzed in the report. When buying a home, 89 percent of Millennials did so through real estate agents, which was 2 percent higher than Gen Xers and 4 percent higher than Baby Boomers.
Millennials rely on real estate agents when buying and selling homes
NAR also posted a press release in May that highlighted the impact Millennials are having on real estate markets across the nation. In the release, Jessica Lautz, managing director of survey research at NAR, stated that although Millennials were raised in the digital age, which would suggest that they would prefer to buy or sell real estate on their own, they tend to rely on real estate agents to help them through market transactions. In fact, the data shows that Millennials want a real estate agent to walk them through the home buying and selling processes and enlist their help at “much higher rates,” according to Lautz.
Millennial service members and veterans buy homes at higher rates
NAR conducted another survey, which showed that active-service military members purchase real estate earlier in life and buy larger, more expensive homes than other homebuyers under the age of 35. The 2016 Veterans & Active Military Home Buyers and Sellers Profile also showed that active-service military members under the age of 35 are purchasing more homes than other buyers in their cohort, and are enlisting the help of real estate agents in virtually all of their real estate transactions. Per the report, young active-service members purchased homes at a rate of 51 percent, whereas non-military buyers bought homes at a rate of 34 percent.
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