There has been a lot of discussion over the last year or so regarding Millennials and the real estate trends that they have steered. A recent report came out that highlighted the fact that more and more Millennials are living with their parents well into their 30s, as they either cannot afford to buy their own place or are opting for less conventional careers where they do not make as much money, initially. Furthermore, it has become increasingly difficult for younger generations to save money for a down payment on a house. This fact combined with stricter lending rules has made for a very interesting real estate landscape in North Texas and across the nation.
Even though Millennials are getting married later in life than any generation before them and certainly aren’t chomping at the bit to settle down with a”real job”, we are seeing quite a few interesting housing trends in regards to this specific generation. In fact, a new study indicates that more and more Millennials are opting to buy homes in the suburbs, rather than in urban cityscapes. According to a National Association of Realtors report of generational trends, only 17% of home buyers under the age of 35 are opting for urban residences, which is down 21% from last year. This decline in urban living doesn’t mean that home sales are down overall, but simply that Millennials are instead choosing to buy in smaller communities and, well, the ‘burbs.
Current Home Buying Trends
According to that same report mentioned above, Millennials currently make up the largest share of home buyers at 35%. For most, this comes as no surprise, as there are more than 83 million Millennials, which is the largest generation. Even though Millennials may be taking a little bit longer to settle down and pull the trigger on home ownership, once they do go this direction, they aren’t skimping on the details. Here is a look at a few Millennial home buying trends:
- The typical home buyer in 2016 is 44 years old with a median income of $86,100
- Millennials are around 30 years old with a median income of $77,400
- 32% of all home buyers are first-timers, which is down from 33% last year
- The most common type of home purchased is a detached single-family home
- Open concept homes are the most desired by Millennials
For younger generations, the biggest hurdle to jump over when it comes to buying a home is the down payment. Gone are the days of lenders simply handing out loans to anyone who expressed interest, as that model clearly only led to trouble and foreclosures. More than half of Millennials (53%) say that saving up for a down payment is the absolute most difficult part of buying a home. This is because of numerous factors, but huge student loan debt is typically blamed.
With these trends in mind, it is no wonder that we are seeing an influx of young people move to Frisco, Plano, and the surrounding areas. With more new construction than we can keep up with, we are seeing a major housing boom in North Texas right now, with no sign of that slowing down anytime soon. To learn more about your housing options in Frisco, please contact The Cheney Group today.