ST. LOUIS, MO/March 5, 2017 (STLRealEstate.News) Millennial Buyers – Where millennials are looking to make their first-time home purchase may actually surprise you today. We often associate millennials with yuppie-obsessions and hipster-leanings, making Portland, Seattle, New York, Brooklyn, Austin, San Francisco, and more their ideal settling areas for furthering their “millennial” culture. But, that assumption is where many go very wrong today, unable to identify what millennials are truly after for setting up their first family home.
A pair of real estate studies released this week confirms that the majority of millennials want to live in the suburbs, raise a family, own dogs, etc. Millennials have already started buying outside urban areas, and basing tier home-buying decisions mainly on affordability today. Reports notably by Zillow and Harvard break with the stereotypes of America’s largest generation, namely that they prefer to rent because they favor experiences over building equity and want to live in urban environments. Though millennials only make up 10 percent of the nation’s homeowners today, the majority who have made the leap decided to follow in the footsteps of their parents and grandparents.
Nearly half of all millennial U.S. homeowners were in the suburbs in 2016, 33 percent in an urban area and 20 percent in rural places, according to Zillow’s Group Report on Consumer Housing Trends. The report came to the conclusion by using more than 13,000 home-buyers, sellers, owners, and renters. Of millennial buyers who moved in the past year, 64 percent stayed in the same city and just 7 percent moved to a different state.
The result is that affordability is definitely the #1 driving factor here for millennials, a generation that entered the economy during a regression after living at home into their mid 20s. As such, St. Louis suburbs and other affordable locations are hot on millennial radars for first-time home purchases in the next year.