- For first time, millennial buyers are dominant demographic in home purchasing
- Largest cohort entering peak age as first-time buyers
Millennial Demographic Now Dominant Force in Home Buying Market
For the last five years, market experts have been waiting for the Millennial generation (born 1981-2000) to age into becoming homebuyers. Now, no one is waiting…Millennials have arrived.
Take a look at the Millennial ascent, according to the CoreLogic Loan Application Database:
- 2014 – Millennials represented 33% of home purchases
- 2015 – 35%
- 2016 – 38%
- 2017 – 42%
- 2018 – 44%
- 2019 – 47%
- 2020 – 54%
(Pandemic inspired low interest rates and remote working likely accelerated the spike of +7% from 2019 to 2020.
Largest Generation of Households Approaching First-Time Home Buying Years
Experts agree that the peak age for first-time homeownership is 33. Millennials just shy of that “peak” age have already plunged in to the housing market as first-time buyers.
In fact, according to CoreLogic’s Fraud Consortium Loan Application data in partnership with that of the US Census Bureau,the largest age cohort of first-time homebuyers was ages 28, 29 and 30.
Overall, approximately 79% of all first-time homebuyer home-purchase applications consisted of Millennial applicants in 2020…a whopping 79%!
Older Millennials Now Becoming Repeat Buyers
Millennials born on the early side of their demographic definition are already becoming repeat and/or move-up/second homebuyers. In fact, according to CoreLogic, the share of Millennials becoming repeat buyers in 2020 was 35%, just 4 percentage points less than Gen-X homebuyers.
Millennial Home Buying Demand Expected to Remain Strong
Now that Millennials have broken the ribbon on homeownership in the US, expect this demographic to drive the housing market into the foreseeable future.
Their only obstacle in the race to buy is affordability as increasing home price acceleration continues.
Thanks to CoreLogic.
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