Millennial Home Buying Trends for 2022 and Beyond
Marrying and having children later We call those born between 1981 and 1997 the “Millennial generation,” and they’re already making a huge impact on the real estate and mortgage landscape. Let’s look at a few trends that define Millennial homebuying attitudes, behaviors, and characteristics: We call those born between 1981 and 1997 the “Millennial generation,” and they’re already making a huge impact on the real estate and mortgage landscape. Let’s look at a few trends that define Millennial homebuying attitudes, behaviors, and characteristics:
Marrying and having children later
Millennials are in no big rush to get married and start a family, focusing on establishing their careers and readying their finances first. In fact, the average age of marriage has risen steadily over the last two decades, and birth rates for women in their twenties dropped by more than 15 percent over just the last ten years. Factor in the need to save and pay off debt before they can start a family, and the average age of first-time homebuyers has jumped to 29.
Student loans and other debts are keeping them from buying
Like no other generation before them, Millennials are shackled by significant levels of student loans, with 42 percent of all older Millennials now owing Sallie Mae or some other lender. In fact, the average college graduate with student loans now leaves school with nearly $33,000 in educational debt, a burden that throws off their Debt-to-Income ratio when they attempt to qualify for a home loan.
But before you start feeling sorry for Millennials because of the student loan mountain they have to climb, consider that their use of debt goes far beyond the cost of education.
Millennials are racking up credit card balances, retail accounts, and auto loans, too, as YOLO and FOMO often override their sense of financial diligence. The average person between 23 and 38 years old now owes $27,900 in non-mortgage personal debt, a trend that hasn’t attracted as many headlines but is keeping many Millennials from buying a home.
Eco homes and going Green
Like no other generation, Millennials are concerned with environmental conservation, and that includes the desire to go Green when they’re buying a home. In fact, 47 percent of Millennial homebuyers consider environmentally-friendly features like solar panels, tankless water heaters, and energy efficient appliances a top priority.
Tech friendly is a must
Of course, Millennials also have a great comfort level with technology, and that includes hi-tech amenities in the home. When it comes to security systems, televisions, computers, and heating and cooling systems that are “smart” and can be operated remotely by phones and tablets, 43 percent of all users are Millennials – the largest single demographic.