Millennials Buying Big in the ‘Burbs
While most people associate the ‘hip younger crowd’ as living in cramped apartments and condos in the heart of the city, a recent study suggests that today’s millennial generation is going for amenity rich neighborhoods in the suburbs!
Millennials are calling. They want the suburbs back.
Like generations before them, millennial homebuyers are beginning to shy away from city life, taking up residence in the suburbs—with one key difference.
According to a report by Zillow, millennial homebuyers are passing over starter homes, paying up for square footage typical of older generations: roughly 1,800 square feet.
Their preferences, however, reflect those of their older counterparts—specifically, an appetite for community amenities and townhouses.
“Millennials have delayed home-buying more than earlier generations, but don’t underestimate their impact on the housing market now that they’re buying,” says Jeremy Wacksman, CMO at Zillow. “As members of this huge generation start moving into the next stage of life, expect the homeownership rate to tick up and suburbs to change to suit their urban tastes. We’re constantly learning about this young group of homebuyers—we’re finding that they are more similar to older generations than many thought. Their views on community and homeownership are pretty traditional, and they don’t all fit the urban stereotype you might have in your head.”
Millennial homebuyers are also putting down roots like older generations—64 percent of those who moved in 2016, in fact, stayed within the same city, and only 7 percent relocated to another state, according to the report.
Half of millennial homeowners are in the suburbs, while 33 percent are in urban areas and 20 percent are in rural areas. Forty-two percent of homebuyers in 2016 were millennials.
Reprinted with permission from RISMedia. ©2017. All rights reserved.