Millennials may be called the renter generation, but they have made significant strides in home buying over the past few years. more than half become owners. They just do it differently.
Millennials are much more likely to buy a home on their own or with a friend than to share it with a spouse compared to older generations, according to the study. new report from personal finance site Bankrate. In fact, in a new survey of more than 1,200 homeowners, the company found that more than 40% of millennials have purchased a home on their own—compared to 34% of Gen Xers and 22% of Baby Boomers—and 10% of millennials have done so with a friend. or a non-romantic partner. Meanwhile, only 1% of Baby Boomers and 3% of Gen Xers reported shopping with a friend.
Older generations were much more likely to shop with a spouse or domestic partner: 70% of boomers did so, as did 56% of Gen Xers. For millennials, the figure was just 47%.
The survey results are consistent with other data about millennials, who generally have more non-housing debt than previous generations, are marrying later in life and are becoming homeowners later. The new path they are forging is changing not only the housing market, but American life as a whole.
“Women, especially young, college-educated women, have also made significant gains in the job market and increased their purchasing power over the past few decades,” says Bankrate analyst Alex Gailey.
While getting married later in life is driving the increase in single millennials buying homes, affordability and lack of supply are responsible for the rise in co-buying with non-romantic partners, especially for first-time homebuyers. The cost of housing has “caused many young buyers… to consider creative solutions,” such as buying with a friend or family member, Gailey says. Millennials are the generation most likely to say they bought a multi-generational homeThis is reported by the National Association of Realtors.
Recently, there has also been an increase in the proportion of unmarried couples buying homes. They accounted for 18% of first-time homebuyers in 2022, up from 4% in 1985, according to the study. another NAR report. Again, affordability is a major factor: two incomes are better than one, and buying a home before marriage can help millennials avoid ever-increasing rent prices and achieve other financial goals (maybe even saving for a wedding).
“The main incentive for co-ownership is the cost savings,” Jennifer Patchen, a real estate broker with Opendoor, previously said. Luck. “Co-buying allows millennials to buy now, providing an affordable place to live in the present while providing a secure investment for the future.”
Assuming affordability and other factors don’t start to improve, Gen Z, which includes members aged 27 and older, could expand millennials’ home-buying habits.
“If we continue to see increases in the percentage of Americans who are single or Americans marrying later in life over the next few years,” Gailey says, “I suspect we will continue to see these trends among younger future buyers.”