Chart of the Week: Millennials Buying the Most Homes

Home Buyers Across the Generations

We have been hearing so much about American millennials being saddled with college debt that it is encouraging to see they are also buying the greatest percentage of houses.

According to a recent study released by the National Association of Realtors, the largest group of home buyers in 2014 were millennials (ages 18 to 34), who composed 32% of all buyers. Generation X (35 to 49) bought 27% of the homes, younger baby boomers (50 to 59) 16%, older baby boomers (60 to 68) 15%, and the silent generation (69 to 89) 10% of all buyers.

The millennial generation also had the largest share of first-time home buyers at 68%, and these buyers tended to find the home they purchased on the internet versus leads coming from a real estate agent for older buyers. The median age for millennial home buyers was 29 and their median annual income was $76,900.

Millennials plan to stay in their home for 10 years, while the baby boomers as a whole plan to live in the house for 18 years. More than 80% of buyers 59 years old and younger purchased a single-family home, while it was more common for people 59 and older to purchase townhomes and condos.

Summary

  • Millennials comprised the largest share of home buyers and first-time home buyers in 2014.
  • The median age for millennial home buyers was 29 and their median annual income was $76,900.
  • Millennials and baby boomers plan to stay in their homes for 10 and 18 years, respectively.
  • People 59 years old and younger purchased single-family homes, while people older than 59 went for townhomes and condos.

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Millennials are finding a way to navigate through debt issues and make major purchases such as housing. Learn more about financial planning:
Individual Investors | U.S. Investment Professionals

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The opinions expressed are those of our investment professionals, and are no guarantee of the future performance of any American Century Investments® portfolio. This information is not intended to serve as investment advice; it is for educational purposes only.