Millennials are the largest group of home buyers for the fourth consecutive year, according to the National Association of Realtors 2017 Home Buyers and Sellers Generational Trends Report. Nearly 40% of home buyers were under 36 years old.
So what’s driving the change in millennial home ownership?
Forty-nine percent of millennial buyers had at least one child, also according to the report. That is up six percentage points from two years ago. Also, while millennials are not racing down the aisle, they are purchasing homes with their partners. Though marriage rates declined, the number of U.S. adults in cohabiting relationships reached nearly 18 million last year, up 29% since 2007. About half of those cohabiters (those living with an unmarried partner) are younger than 35. But most importantly, in a joint Real Estate Investment Survey with Harris Interactive, RealtyShares found that 55% of millennials are enthusiastic about home ownership as an investment, and over half would invest in property other than their primary residence.
With all the enthusiasm millennials have towards real estate investment, for them it is still a foreign and confusing concept with many barriers. In fact, 70% of all Americans think investing in real estate is more difficult than investing in other asset classes. Few are aware of the options towards home ownership, such as borrowing from retirement, real estate crowdfunding or house hacking.
Not surprisingly, millennials believe technologymakes the real estate investment process easier. That’s why Kendra Barnes, millennial and real estate investment coach, started The Key Resource, a digital resource educating and empowering fellow millennials to invest in real estate.
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