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Millennials Buying More Homes Than Any Other Generation

Syriel

Syriel

Banned
Dec 13, 2017
11,088
And they're skipping "starter" homes, opting instead for bigger places right out of the gate since most have spent more time renting than prior generations.

If you believe the article, Millennial home buyers will be the next force driving home prices upwards.

Millennials put off buying their first home as they struggled with the aftereffects of the Great Recession. Now that they're snapping up houses in greater numbers, many older Millennials are making up for lost time: They're bypassing the traditional gateway to homeownership – the starter, or entry-level, home – and buying larger, more expensive houses where they're likely to raise families and maybe even grow old.
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Thirty percent of Millennials -- those born between 1980 and 2000 -- bought homes for $300,000 and above this year, up from 14% in 2013, according to NAR. Of course, home buyers are more likely to splurge as their savings and income rise.

But older Millennials are even purchasing bigger homes than their predecessors at similar ages. From 2012 to 2016, nearly a third of buyers age 33 to 37 bought four-bedroom homes compared to about 24% in that age group in 1980, 1990 and 2000, according to an analysis of Census Bureau data by Ralph McLaughlin, chief economist of Veritas Urbis Economics.
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Millennials, in fact, are purchasing more homes than any other generation. They made up 36% of home buyers last year, up from 32% in 2013, NAR figures show.

Homeowners typically stay in starter houses for about five years before trading up, NAR's Yun says. But by waiting to buy until their job status and income grew, Millennials have been able to land their dream houses at an earlier age, he says.
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Source:
https://www.msn.com/en-us/money/rea...es-millennials-skip-starter-houses/ar-AAwTu7E
 
Last edited:
AmethystArcana

AmethystArcana

Member
Oct 25, 2017
1,134
That's surprising, considering we're apparently killing everything else in the economy.

... I helped, but I bought... Well, I wouldn't call it a "starter home" but it wasn't for $300k.
 
HStallion

HStallion

Member
Oct 25, 2017
62,364
I find this hard to believe. I bought my own house but I was lucky enough to have a job for years that covered all my basic expenses so I could pay off student loans and then save up thousands of dollars. Most people my age rent or live with family that I know. Only a few have purchased houses.
 
_ifigured

_ifigured

Member
Oct 29, 2017
2,305
Because they rented for years, they can now afford dream homes? That makes no sense. Rent is out of fucking control.
 
eXistor

eXistor

Member
Oct 27, 2017
12,356
It's true for me. I lived with my parents for...I'll say too long. But it cost me nothing and I was always working and I saved up enough cash to outright buy a house a few years ago. I don't plan on moving either. It's pretty great owning a house and not paying mortgage or whatever. In the meantime I'm saving up a decent amount of cash again because of my low monthly costs.
 
Einbroch

Einbroch

Member
Oct 25, 2017
18,077
Also more millenials live at home after graduation, which saves money big time.

Nicktals said:
30% of all millenials bought a 300k home? I find that really hard to believe!
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Where are you seeing this?

I'm seeing a third of people who buy 300k houses are millennials, but that doesn't mean that a third of millennials are buying 300k houses. I'm also seeing over a third of millenials are buying houses period, but not 300k+.
 
Slayven

Slayven

Never read a comic in his life
Moderator
Oct 25, 2017
93,602
Outside of bubbles like Cali and NYC, what is the overall housing market like?
 
shaneo632

shaneo632

Weekend Planner
Member
Oct 29, 2017
29,076
Wrexham, Wales
Not sure I buy this. At least in the UK most people I know either rent or still live with their parents well into their late 20s.
 
base_two

base_two

Member
Oct 27, 2017
1,820
_ifigured said:
Because they rented for years, they can now afford dream homes? That makes no sense. Rent is out of fucking control.
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Maybe the reasoning is that because they handled the high cost of rent compared to a mortgage for years, they are prepared to take on a mortgage at a similar monthly payment? That ignores actually saving for a down payment though.
 
Zoe

Zoe

Member
Oct 25, 2017
14,330
entremet said:
Older Millennials. 36/37 is the top end.

Don't let the clickbait newstories convince you. The economy is blazing and many people are doing very well.
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This is why I hate how large the Millennial range is. A 37 year old is in a much different place from an 18 year old.

Anyway, as a 36 year old who bought a non-starter as a first home last year, I am part of this statistic. Though most people I know bought houses a few years ago.
 

Deleted member 3812

User requested account closure
Banned
Oct 25, 2017
8,821
What the hell??? I'm considered a Millennial (born January 1986) but I sure as hell can't afford to buy a home at any price.... I'm totally broke and the income I'm receiving (Social Security Disability) isn't enough to buy a home with.
 

Deleted member 17092

User requested account closure
Banned
Oct 27, 2017
20,360
Einbroch said:
Also more millenials live at home after graduation, which saves money big time.


Where are you seeing this?

I'm seeing a third of people who buy 300k houses are millennials, but that doesn't mean that a third of millennials are buying 300k houses. I'm also seeing over a third of millenials are buying houses period, but not 300k+.
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"Thirty percent of Millennials -- those born between 1980 and 2000 -- bought homes for $300,000 and above this year, up from 14% in 2013, according to NAR. Of course, home buyers are more likely to splurge as their savings and income rise."

It's not written clearly at all.
 
Dennis8K

Dennis8K

Banned
Oct 25, 2017
20,161
Impossiberu! I just bought avocado plantation stock and now you are telling me Millennials are buying homes?!!!
 
Einbroch

Einbroch

Member
Oct 25, 2017
18,077
ZOONAMI said:
"Thirty percent of Millennials -- those born between 1980 and 2000 -- bought homes for $300,000 and above this year, up from 14% in 2013, according to NAR. Of course, home buyers are more likely to splurge as their savings and income rise."

It's not written clearly at all.
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Does this mean that a third of millenials who bought homes or just a third of millenials period? Because I can see the former. But thanks for pointing it out.
 
Elfotografoalocado

Elfotografoalocado

Banned
Oct 27, 2017
5,618
Spain
I mean, of course Millennials should be the ones buying the most homes. It goes without saying. Older people are already established. This is not news.
 
_ifigured

_ifigured

Member
Oct 29, 2017
2,305
base_two said:
Maybe the reasoning is that because they handled the high cost of rent compared to a mortgage for years, they are prepared to take on a mortgage at a similar monthly payment? That ignores actually saving for a down payment though.
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Let alone a down payment big enough to avoid paying PMI and having any savings left over for emergency repairs or the necessary upkeep that previous home owners typically put off. I need to see a geographic breakdown before believing the claims in this article.
 

UnderNewOwnership

Member
Dec 4, 2017
3,097
Zoe said:
This is why I hate how large the Millennial range is. A 37 year old is in a much different place from an 18 year old.
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18-y.o.s aren't Millennials. They're GenZ-ers.
In fact, I've long since demanded that the dumb 'Millennial' label be retired, and GenY used instead. 'Millennial' is a catch-all term for lazy sociologists.
 
Dennis8K

Dennis8K

Banned
Oct 25, 2017
20,161
Millennials today: born 1980-2000

Millennials tomorrow: born 1970-2010

Millennials forever

"Daddy, what are Millennials?"

"All that the sun touches is Millennials, my son"
 
OP
OP
Syriel

Syriel

Banned
Dec 13, 2017
11,088
Slayven said:
Outside of bubbles like Cali and NYC, what is the overall housing market like?
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Another factor is people moving from the coasts, to the south, where housing is currently cheaper, so a $300k home w/a $1800-2000 mortgage doesn't seem crazy.

shaneo632 said:
Not sure I buy this. At least in the UK most people I know either rent or still live with their parents well into their late 20s.
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Article is US focused.

base_two said:
Maybe the reasoning is that because they handled the high cost of rent compared to a mortgage for years, they are prepared to take on a mortgage at a similar monthly payment? That ignores actually saving for a down payment though.
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It's more that people starting families need more space, so the folks buying are in the same place (space needs wise) that you would normally see someone moving up from a starter. Also contributing is the fact that so few starter homes have been built (relatively speaking) that starter homes are generally overpriced for what they offer, so buyers are opting to bump up to places with more space and a higher cost, but a better overall value.
 
Hickbilly

Hickbilly

Banned
Oct 25, 2017
215
Slayven said:
Outside of bubbles like Cali and NYC, what is the overall housing market like?
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Really good actually. If you avoid enormous cities where prices are artificially high due to a complete lack of housing because everyone just HAS to live there finding affordable housing is easy. Im eyeballing a 2000 sq ft house with a double garage and a rental unit above it for about 130k. The rental unit will pay the mortage 6-9 months out of the year, so my yearly house payments would total about 2100 bucks.
 
Burgess_101

Burgess_101

Member
Oct 26, 2017
1,293
I've just tried to buy a house in the UK at the age of 22, I failed because everything in my price range was either a shit house, shit area, or both. Not even worth it.
 
Einbroch

Einbroch

Member
Oct 25, 2017
18,077
Slayven said:
Outside of bubbles like Cali and NYC, what is the overall housing market like?
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Moved from Kansas to Illinois 3 months ago and we sold our house in 6 days at full asking price. Here houses are selling stupid fast. We had to put in an offer above asking price or it could have been another two months in my mother's basement.
 
Tapeworm

Tapeworm

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Oct 25, 2017
898
User warned: Trolling, insulting generalizations against large group of people.
Millenials basically used the job market and student loans as an excuse to freeload off their parents just so they could accumulate wealth by not paying rent. Now they are buying very nice houses, whereas as people who worked hard and lived on their own post graduation (aka behaved like adults) are left struggling, unable to find appropriate housing for themselves and family. Millenials love playing the victim while reaping nothing but benefits from the goodwill of others—mainly their parents. They are parasites.
 
ViewtifulJC

ViewtifulJC

Banned
Oct 25, 2017
21,020
Tapeworm said:
Millenials basically used the job market and student loans as an excuse to freeload off their parents just so they could accumulate wealth by not paying rent. Now they are buying very nice houses, whereas as people who worked hard and lived on their own post graduation (aka behaved like adults) are left struggling, unable to find appropriate housing for themselves and family. Millenials love playing the victim while reaping nothing but benefits from the goodwill of others—mainly their parents. They are parasites.
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I feel lucky I'm the first to quote this post, the bitterness is breathtaking
 
Dennis8K

Dennis8K

Banned
Oct 25, 2017
20,161
Tapeworm said:
Millenials basically used the job market and student loans as an excuse to freeload off their parents just so they could accumulate wealth by not paying rent. Now they are buying very nice houses, whereas as people who worked hard and lived on their own post graduation (aka behaved like adults) are left struggling, unable to find appropriate housing for themselves and family. Millenials love playing the victim while reaping nothing but benefits from the goodwill of others—mainly their parents. They are parasites.
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6495.jpg
 
Canklestank

Canklestank

Member
Oct 26, 2017
762
eXistor said:
It's true for me. I lived with my parents for...I'll say too long. But it cost me nothing and I was always working and I saved up enough cash to outright buy a house a few years ago. I don't plan on moving either. It's pretty great owning a house and not paying mortgage or whatever. In the meantime I'm saving up a decent amount of cash again because of my low monthly costs.
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Holy shit dude. Good for you, that's awesome.

My wife and I bought a home, but it was definitely a starter home that we plan to stay in for a while if we can. We're in our upper twenties. I'm a little skeptical that so many can afford houses that expensive, so it'll be interesting to see if there's a "Millennials default on their homes at a higher rate than any other generation" headline in the future.
 
Rassilon

Rassilon

Member
Oct 27, 2017
10,606
UK
Why would I want to spend money on an home when I've got to feed my avocado on toast addiction?
 
GoldenEye 007

GoldenEye 007

Roll Tide, Y'all!
Banned
Oct 25, 2017
13,833
Texas
Just bought one myself last week. But it's definitely a starter home and it's small - only 950 sq feet. Under 150k and in one of the Dallas suburbs. But it's nice, just needs a bit of work to make it function better.

But we think it's great and it is a lower cost monthly including insurance/taxes than our current rent payment. Also likely going to keep energy costs in check. But of course there will be other expenses that we have to put into it over time.

As far as our ages, my wife is 28 and I just turned 30 - so kind of more in the middle of the Millennial generation.
 
Torpedo Vegas

Torpedo Vegas

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Oct 27, 2017
22,834
Parts Unknown.
Slayven said:
Outside of bubbles like Cali and NYC, what is the overall housing market like?
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Bought my home last year in Lexington Kentucky and it was fucking nuts. Everything was selling within 48 hours of going up on the market, I put in offers on 5 house before I got mine. I was personally in another 3 houses while my realtor got phone calls telling her the house we were in was just sold for above asking price.
 
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