Every generation of first-time home buyers is a bit different. Here are some of the latest trends among the current generation:
1. Buying in their 30s
National Association of REALTORS® puts the median age of a first-time home buyer at 32.1
2. Choosing vintage charm or shiny and new
Homes built before 1970 and after 1999 tend to be a bigger hit with millennial home buyers. Some popular styles are homes built pre-World War II, mid-century homes, and Mediterranean homes.2
3. Jumping before interest rates do
Despite being a perceived as a “renting generation,” it seems that more people are buying. First-time buyers purchased 6% more homes in the third quarter of 2017. 3
4. Fewer opting for the “starter home”
Due to the demand, and fueled in part by low interest rates, starter homes seem to be harder to come by. Also, these homes do not seem as profitable for builders, due to the high cost of land for new homes in many areas.4
5. Avoiding the high cost of rent
Being priced out is a real thing: 23% of millennial buyers surveyed cited rising rents as a key factor in their decision to buy a home.5
6. Moving to the suburbs
Only 15% of first-time millennial home buyers purchased a home in an urban area.5
Suburbs may be more attractive thanks to their mix of urban and suburban features.
7. Choosing open floor plans
Many younger, first-time home buyers gravitate towards open spaces for socializing and entertaining, as well as the versatility of these spaces for multiple purposes.6
8. Large kitchens
Fitting well with the trend of open floor plans, first-time homebuyers seem to prefer homes with larger kitchens. They tend to enjoy having more room for preparing meals, as well as entertaining and interacting with guests during meal preparation.6
Millennial home buyers tend to value eco-friendly features such as smart-home technology.7
Features that help track energy usage are popular, and if possible, many in this group might consider adding solar power to their home.
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