RISMedia's Real Estate Magazine

APR 2019

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/1097917

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Page 91 of 144

RISMedia's REAL ESTATE April 2019 85 According to a new realtor.com® re- port, millennials account for 42 per- cent of all home loans today—the biggest slice—but compared to their counterparts, their down payments and spend are smaller. Millennials Average Down Payment (Dec. 2018): 8.8 percent Median Price: $238,000 Originations (Share): 42 percent Generation X Average Down Payment (Dec. 2018): 11.9 percent Median Price: $289,000 Originations (Share): 40 percent Baby Boomers Average Down Payment (Dec. 2018): 17.7 percent Median Price: $264,000 Originations (Share): 17 percent Affordability is their driving force, the report shows. Unlike other generations who've been able to bump up down payments to off - set prices—and buy in cities with costlier housing, but more job op - portunities—millennials are borrow- ing higher loans, and congregating where there are jobs and more prac - tical prices. According to the report, this includes: 1. Buffalo, N.Y. 2. Pittsburgh, Pa. 3. Milwaukee, Wis. 4. Cincinnati, Ohio 5. Columbus, Ohio In these cities, more than half of home loans are to millennials, the report shows. "Millennials are getting older, with better jobs and deeper pockets, al - lowing them to expand their collec- tive purchase power, and hence, their footprint in the market," explains Ja - vier Vivas, director of Economic Re- search at realtor.com®. "The stereo- type that millennials primarily choose to buy homes and live in large metro areas isn't the reality. Results show millennials' expansion is more heav - ily conditioned by affordability than in prior years, so their eyes are set on less traditional secondary markets where homes and jobs are now avail - able and plentiful." RE For more information, please visit www.realtor.com. M illennials are behind the majority of mortgages today, and their borrowing decisions are being driven by factors other generations are not. Gen Y's Home-Buying Power Stretches By Suzanne De Vita

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