Older generations always seem to think millennials are doing it all wrong, but the truth is, millennials aren't all that different from their grandparents—especially when it comes to buying their first homes.
New research from Zillow confirms that, while younger people are putting off buying homes later than previous generations they still have a sizable impact on the housing market.
Chairman Tim Rood, in an interview with I24 News Clearcut Program. “While existing home sales are picking up, we’re going to run out of inventory especially in lower-priced home that appeal to millennials.”
Last year, millennials made up 42 percent of home buyers. Along with that, their home preferences are most similar to that of their grandparents. Millennials are choosing homes with shared community amenities, for example, and considering buying townhouses more than the next most recent generations.
The study found that almost 50 percent of millennials live in the suburbs, while 33 percent live in urban areas and the remaining 20 percent are in rural areas. Almost 30 percent of the population in both San Diego, CA and Austin, TX is made up of millennials, while Los Angeles, San Antonio and Columbus, OH have millennial populations of over 25 percent.
But warns Collingwood’s Rood, “Until you find a way to incentivize builders, and take the regulatory morass off their shoulders allowing them to start constructing starter homes, than you are going to run into a buzz saw.”
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