Millennials continue to outpace older generations in homebuying

Dated: 11/13/2019

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Millennials are moving more, spending more and buying more

Continuing a trend that stretches back to one year ago, Millennials are still dominating the homebuying landscape, taking on more mortgages than previous generations.

A report from Realtor.com says that at the end of the third quarter, the Millennial share of mortgage originations increased 3% from last September, coming in at 46%.

(Image courtesy of realtor.com. Click to enlarge.)

Meanwhile, Gen X and Baby Boomer shares continued to fall, to 35% and 17% this year, from 37% and 18% last year, respectively.

As for primary home loan originations, Millennial shares increased also. In September, Millennial share was 44%, up from last year’s 40%.

Gen X shares fell from last year’s 41% to 39%, while Baby Boomer shares fell to 16% from 17% last year.

Millennials were also found to move once every two years, a study from Porch said. Gen Xers moved about every four years and baby boomers stayed in the same place for nearly six years at a time. 

According to the report, Millennials are buying more expensive homes, too.

The median price of a primary home purchased by Millennials went up 6%, to $250,000 compared to last year. Generation X and baby boomers only increased their purchase prices by 5% and 2%, respectively.

(Image courtesy of realtor.com. Click to enlarge.)

Millennials are also increasing the size of loans they are taking out to buy a home, as this generation had a median loan amount of $231,590 in September. This is 7.3% higher than last year.

This growth in mortgage debt undertaken by Millennials outpaces that of both Baby Boomers, which grew by 2.6%, and Generation X, which grew by 4.4%.

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Ryan Guedel

Prescott, Arizona! Set at an elevation of 5,200' feet Enjoy the largest stand of ponderosa pine forests in the U.S., Prescott's near perfect weather provides an average temperature of 70 degrees, wit....

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