Older generations sure love to gripe about millennials: They're killing this or that industry, they're selfish, they spend too much money on avocado toast. Well here's a headline that'll leave the haters reeling: Millennials actually make up 42 percent of today's home buyers, which is more than any other generation. Yup, it's not all struggle city for the 18 to 34 age range.
We have some insights to share about the millennials' current role in the real estate market thanks to a consumer housing trends study published by Zillow this month. More than 13,000 homeowners, sellers, buyers, and renters were surveyed by an independent market research firm between April 27 and May 12, 2016. The results are in, and they're actually not-so-obvious.
Millennials skip the starter home phase and go for properties with higher prices, similar to homes bought by older buyers.
They pay a median price of $217,000 for a home, which is more than baby boomers, and just 11 percent less than Generation X.
Many millennials are stuck in the suburbs.
Only one fourth of millennial homebuyers live in the city, while nearly half live in the suburbs.
Millennials put in their research.
They use more resources to educate themselves and research agents and lending professionals more than any other generation. Millennials also contact more agents than any other generation.
Millennials are loyal to their agents.
First of all, they enlist an agent earlier in the home-search process. And after the purchase, they're more likely to stay in touch with an agent, and refer them to friends, than members of any other generation. More than half of millennial homebuyers have recommended their agent to others, and more than one quarter have left an online review of their agent.
Millennial homebuyers are the most racially diverse.
Only 66 percent are white, as compared to 85 percent in the silent generation. This reflects the changing demographics of the American middle class.
Millennials are not scared to DIY.
Sixty-nine percent of millennial homeowners surveyed said that when projects need to be done around the home, they prefer to do them directly as opposed to relying on professionals. They show the highest willingness of all generations to tackle appliance installation, the installation of new carpet or flooring, and to update plumbing.