Millennials: The Largest Home Buying Demographic

Millennials
Millennials have become the dominant force in the home buying market.

When it comes to the home buying demographic, the tides are turning. A recent report titled “Home Buyers and Sellers Generational Trends” by the National Association of Realtors (NAR) revealed a significant shift in the housing market: millennials are now the biggest home-buying demographic.

That’s right, millennials (aged 25 to 43) make up a whopping 38% of home buyers, surpassing the long-reigning Baby Boomers (now at 31%). This marks a substantial increase from last year, where millennials only accounted for 28% of buyers. As a refresher, Baby Boomers range in age from 59 to 77.

What is driving the millennial surge in home buying?

This report highlights two main factors for this shift:

  • Younger millennials entering the market: This younger segment (aged 25 to 33) is hitting prime first-time home buyer age. The NAR report shows a jump in their participation, with 75% purchasing their first home.
  • Older millennials upgrading: Millennials on the other end of the age spectrum (aged 34 to 43) are looking for more space as their families grow. They’re trading up for larger homes to accommodate their needs.

What does this mean for the housing market?

Millennials’ preferences are likely to shape the market in the coming years. Here are a few potential trends:

  • Increased demand for starter homes: With a high number of younger millennials entering the market, the demand for affordable starter homes is likely to rise.
  • Focus on functionality: Millennials prioritize functionality over square footage. They may be drawn to open floor plans, smart home features, and energy efficiency.
  • Suburban shift, but with a twist: While millennials may still value some urban amenities, they’re also open to suburbs that offer more space and affordability. Look for continued interest in walkable areas with good schools and access to outdoor recreation.
  • Technological Savvy: This generation expects a smooth and tech-enabled home buying experience, with virtual tours and online applications becoming even more commonplace.

Summary

As the home buyer demographic continues to evolve, so do the required technological needs for these buyers. For this reason, it is important to work with a real estate professional that embraces technology and can therefore relate better to both buyers and sellers.

At Live South Florida Realty, Inc. we have always embraced disruptive technology to better serve our clients. For example, our Florida Home Search app has garnered substantial praise in assisting many clients with streamlining their home search. Are you looking to buy or sell a home in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Of course, be sure to download our free Florida Home Search app as well.

By natasha moore

REALTOR® with Live South Florida Realty, Inc.