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.
- 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.
Download a PDF of this post.
- Chart of the Week: Baby Boomers Overwhelmed by Millennials
- Chart of the Week: Return of the Multi-Generational Household
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.