Powered by Record Information ServicesHome > Chicago Homes > Foreclosure Auction Schedule > Foreclosure Articles
Millennials and the Market
Where have all the first-time buyers gone?
Despite enticing conditions – improving job market, low interest rates – the share of first-time buyers dropped to 33 percent, according to the 2014 National Association of Realtors Profile of Buyers and Sellers, the lowest share since 1987 (30 percent).
“It’s not that young people don’t want to purchase to purchase a home, it’s that they’re delaying the purchase,” Lisa Sturtevant, vice president of research for the National Housing Conference, said at the recent 2014 Realtors Conference and Expo. “Many of the reasons Millennials are not forming households or making purchases are economic, so as the economy improves, we should see this group become more of a force in the market.
The Millennials – adults age 18 to 33 – saw 60 percent better job growth than the overall population in 2014, and a 6 percent drop in unemployment. That growth, coupled with improvements in economic opportunities, may encourage the group to form households and buy homes in coming years.
Millennials represent 60 percent of first-time buyers, according to Jonathan Smoke, chief economist for Realtor.com. Energy and jobs are a top concern for Millennials, who show a strong preference for urban living and working and place a high value on mass transit and “work, live, play” communities.
The median age of first-time buyers was 31, according to the NAR profile, unchanged from the past two years. The typical first home was 1,570 square feet and cost $169,000. The median down payment for first-time buyers was 6 percent; 23 percent said saving for a down payment was difficult, and more than half (57 percent) said student loans delayed saving. More than a quarter (26 percent) of buyers received a gift from a friend or relative – mom and dad, most likely – to help with the down payment.
Foreclosure Auction Schedule |
Foreclosure Articles |
All content copyright © 1997 - 2014 by Record Information Services, Inc