Twelve percent of all recent buyers delayed their home purchase due to outstanding debt.
Though highly leveraged with student loan and credit card debt, Millennials now comprise the largest share of home buyers and express the most optimistic mindset about their home as a good investment, according to a new real estate market trends generational survey released by the National Association of Realtors.
Millennials, the largest generation after the Baby Boomers, not surprisingly make up the largest share of first-time buyers (76 percent), the report finds. Eight-out-of-ten recent buyers consider their home generation a good financial investment, compared with 74 percent for buys 68 and older.
“Their aspiration and the long-term investment aspect to owning a home remains solid among young people,” Lawrence Yun, NAR chief economist, said in a statement. “However, the challenges of tight credit, limited inventory, eroding affordability and high debt loads have limited the capacity of young people to own.”
Twelve percent of all recent buyers delayed their home purchase due to outstanding debt, the real estate market trends report finds. Of the 20 percent of Millennials who took longer to save for a down payment, more than half (56 percent) cited student loan debt as the biggest obstacle. In comparison, 15 percent of Gen Xers delayed buying, with 35 percent and 46 percent citing student debt and credit card debt, respectively.
The average age of Millennial home buyers was 29, with a median income of $73,600. They were more likely than previous generations (19 percent) to buy in an urban or central city area. For these homebuyers, the quality of the neighborhood, convenience to job and commuting costs influenced their purchase. In comparison, access to friends, family and shopping, along with affordability, were key influencers on where Baby Boomers bought their homes.
This tech-savvy generation was also more likely to first learn about the home they purchased through the Internet, while older Baby Boomers and seniors relied on a real estate agent to find their new home. However, Millennials did rely on real estate agents to help them understand the home buying process
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.