Millennials are the largest living population in the United States, and have become a big player in the housing market. According to a Zillow group report, millennials made up 42 percent of home buyers in 2016 – more than any other generation.
Some of their buying habits mirror those of their grandparents’ generation, like skipping ‘starter’ homes and going straight for purchasing larger properties at higher prices. They also veer towards townhouses and homes with shared community amenities, while also looking for neighborhoods that are walkable to shopping and stores, and give access to public transportation.
One way they differ compared to older generations is that they are waiting a little longer to purchase their first home. Millennials want to buy a home, but need to get other finances in order first, including student loan debts that are plaguing the generation. These debts have caused some to move back in with their parents immediately after college, waiting until they have a better handle before heading into the housing market.
Unsurprisingly, we are seeing mortgage companies vying for the millennial market. Recently, lenders started offering ‘reward points’ to attract the young generation. However, advisors would still recommend looking for the mortgage with the best rates and closing costs instead of basing a major financial decision on reward points.