RISMedia's Real Estate Magazine

MAY 2016

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/668992

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Page 96 of 118

92 May 2016 RISMedia's REAL ESTATE The share of millennials buying in an urban or central city area decreased to 17 percent (compared to 21 per- cent a year ago) in this year's sur- vey, and fewer of them (10 percent) purchased a multifamily home com- pared to a year ago (15 percent). Overall, the majority of buyers in all generations continue to purchase a single-family home in a suburban area, and the younger the buyer, the older the home they purchased. Lawrence Yun, NAR chief econo- mist, says while millennials may choose to live in an urban area as renters, the survey reveals that most aren't staying once they're ready to buy. "The median age of a millennial homebuyer is 30 years old, which typically is the time in life where one settles down to marry and raise a family," he says. "Even if an urban setting is where they'd like to buy their frst home, the need for more space at an affordable price is for the most part pushing their search further out. "Furthermore, limited inventory in millennials' price range, minimal entry-level condo construction and affordability pressures make buying in the city extremely diffcult for most young households," adds Yun. For the third straight year, the larg- est group of recent buyers were mil- lennials, who comprised 35 percent of all buyers (32 percent in 2014), more than the combined amount of younger and older boomers (31 per- cent). Twenty-six percent of buyers were Gen X, and the Silent Genera- tion made up 9 percent. Financing the Purchase This year's survey underlined the challenges debt had on some buy- ers' ability to purchase a home. While debt delayed saving for a down payment by a median of four years for all buyers, the number of years postponed increased to three years for millennials and six years for older boomers. Among the share of buyers who said saving for a down payment was the most diffcult task, millennials were most likely to cite student debt (53 percent) as the debt that delayed Millennials More Likely to Buy in Suburban Areas A growing share of homebuyers are millennials, and more of them are purchasing single-family homes outside of urban areas, according to the 2016 National Association of REALTORS® (NAR) Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent homebuyers and sellers.

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