Young First-Time Buyers Are Saving for Their Dream Homes

 

Young First-Time Buyers Are Saving for Their Dream Homes | Simplifying The Market

Young buyers (Millennials & Gen Z) have waited longer than previous generations to enter the housing market for their first home. However, this hasn’t stopped them from dreaming about the home they will eventually buy. Many spend hours searching listings and building Pinterest boards of their favorite home features.

According to a survey from Open Listings, 70% of single renters are more likely to spend their Sunday nights swiping through house listings than dating profiles.

All that time window shopping has led 45% of millennials to expect the first home they buy to be their “dream home”! They are willing to wait longer, save more for a larger down payment, and are pickier about the listings they want to tour and the features that they want to see in their first home.

Waiting a little longer to buy a home than their parents or grandparents did has also helped young buyers become more established in their careers prior to making such a large purchase. Lawrence Yun, NAR’s Chief Economist, recently commented,

“Older millennials are now entering the prime earning stages of their careers, and the size and costs of homes they purchase reflect this. Their choices are falling more in line with their Gen X and boomer counterparts.”

In some areas of the country, high competition in the starter home market forces young buyers to wait longer. The extra money they save during that time opens their search to bigger, more expensive homes.

If this trend continues, older millennials will skip the starter home altogether, going straight to a trade-up or premium home instead.

Bottom Line

If you are one of the many young renters planning on buying your first home soon, let’s get together to help determine what type of home will best suit your present and future needs.

 

Author: Kunal Patel Group

The Kunal Patel Group is a forward-thinking, technology-driven real estate team serving clients across Southwest Ohio. Since the team’s creation in 2014, they have redefined the real estate experience by embracing technology to sell homes smarter and faster in a traditional marketplace. Virtual reality, drone photography, and “Big Data” driven marketing set the new standard. Fostering a culture of collaboration where a variety of strengths are shared across all clients and listings, together they offer better representation and a true competitive edge.

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