Young homebuyers tolerate high mortgage rates better than their older counterparts.
Gen Z and Millennial respondents to a new survey say they will accept rates as high as 6.3% and 6.2%, respectively, in order to buy a home in 2024. Gen X and Baby Boomers, in comparison, won’t accept any rate above 6%.
The survey, ServiceLink’s State of Homebuying Report, focused on Americans who bought or tried to buy a home in the last four years.
Younger buyers also expressed more determination to buy this year, with 63% of Gen Z respondents and 59% of Millennials saying they plan to, compared to 45% of Gen X and 21% of Baby Boomers.
Taken together, 47% of all respondents plan to purchase…
Older Americans are choosing to age in their current homes, driving average tenure up to more than a decade and keeping inventory tight for buyers.
The typical homeowner spent 11.9 years in their current home, nearly double the 6.5-year average of two decades ago, according to a new report from Redfin.
This isn’t the longest on record – tenure peaked at 13.4 years in 2020 and declined during the pandemic buying boom. But it remains high, especially at a moment when inventory is difficult to come by.
The report attributes the data to Baby Boomers remaining in their homes late in life. Nearly 40% of this demographic have lived in their home for at least 20 years. An additional 16%…
The generational real estate showdown is still underway, and the latest battleground is large homes.
A new report from Redfin found that Baby Boomers with empty nests own 28% of the nation’s large homes, while Millennials with kids own just 14%.
This a huge turnaround in the last ten years, as a decade ago, younger adults with children were just as likely to own large homes as their parents.
Redfin defined “empty nesters” as households headed by Baby Boomers that report only 1-2 adults living in the home, and based on the number of bedrooms, with three or more being considered large.
Part of the problem is the current state of the housing market. Many Baby Boomers own their homes…
By ERIN FLYNN JAY
American homebuyers are getting older and industry leaders are preparing to welcome more Hispanic homeowners in the coming decades.
According to the 2023 Home Buyers and Sellers Generational Trends Report by the National Association of Realtors, members of Gen X between 43 and 57 years old made up 24% of recent buyers. They were followed closely by younger Baby Boomers who, between 58 and 67 years old, represented 23% of recent buyers.
Older Millenials between the ages of 33 and 42 accounted for just 16% of recent purchases.
The typical first-time homebuyer is 36, and the typical repeat buyer’s age climbed to 59 last year. Those are the highest ages recorded, a press release for NAR’s…
Despite being the largest cohort of potential homebuyers in the country, Millennials are lagging behind other generations in purchases.
That applies to Baby Boomers now – who are snatching up the few homes for sale thanks to home equity and greater savings – and Boomers when they were the same age as Millennials today. Just over 50% of Millennials owned a home in 2022, compared with 56.5% of Boomers in 1990 and 58.2% of Gen X in 2006.
Even the youngest generation, Gen Z, is tracking ahead of Millennials in homeownership at the same age.
A combination of forces has made it difficult for Millennials to become homeowners. Ongoing bouts of economic uncertainty in 2001, 2008, and today have hindered…
Mortgage applications reversed after a month of increases despite declining rates, a rocky start to the typically robust spring buying season.
The Mortgage Bankers Association’s weekly survey says the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 4.1%.
Adjusted purchase applications dropped by 4%, while the unadjusted index was down 3% from the week before and 35% lower YOY.
Mortgage rates fell slightly, with the average interest rate for 30-year fixed loans down from 6.45% to 6.40%. This is the lowest level in more than a month.
Jumbo rates increased, however, from 6.27% to 6.36%.
“While we have seen relative weakness at the high end of the housing market in recent months, the…
By KIMBERLEY HAAS Low-income and minority buyers will continue to be crowded out of the housing market in 2022, according to the director of research at the AEI Housing Center. The American Enterprise Institute is located in Washington, D.C., and during a webinar on Monday, Director of Research Tobias Peter said entry-level homebuyers are being replaced by borrowers with higher incomes in many markets. “When we tally up the entry-level share of all home sales, we’re finding that the entry-level, as of December of 2021, accounted for 52.7%, which is, of course, much down from before the pandemic. In December of 2019, it was at 59.9%, and when we started tracking this back in 2012, it was at 71%,” Peter…
Homeowners gained $9.1 trillion in housing value between November 2020 and November 2021, a new report from Redfin found. U.S. home prices rose 31.4% year-over-year (YOY) to $38.3 trillion in November, with a $2.6 trillion annual increase a year earlier. The surge in value was propelled by continuing home price appreciation. November was the 16th consecutive month of double-digit price increases. The number of homes for sales reached a record low, adding fuel to the fire. “The surge in housing values during the pandemic has widened the gap between homeowners and renters in America. Homeowners have seen their wealth increase significantly over the past year, while renters have missed out on those gains and are now grappling with rent inflation,”…
By KIMBERLEY HAAS As the number of homes purchased by people with different last names increases, it is being reported that Millennials are choosing to buy single-family houses with their friends. In an article written by Zinhle Essamuah for NBC News, three women talked about their decision to buy a house together. Amanda Scheider, 30, told Essamuah that it’s like having a permanent sleepover. Scheider lives with Kathy Keel, 30, and Stephanie Vandergrift, 28, in Gallatin, Tennessee. They signed for a 30-year, $315,000 mortgage in May of 2020 after renting a house together. Essamuah used analytics from Attom Data Solutions which shows the number of homes purchased by people with different last names increased by nearly 772% between 2010 and…
A Zillow analysis of the age, sex, race, and income of home buyers over the last decade revealed demographics might have more to do with the sizzling housing market than the pandemic. Millennials and baby boomers have been on a path to face off in the housing market since before the pandemic due to retirement trends and Millennials entering their 30s, typical homebuying years. Though Millennials are currently the most impactful force in the housing market, Boomers are currently gaining. The median buyer age rose from 40 to 44 between 2009 and 2019. The share of recent buyers who are over 60 years old rose 47% from 2009 to 2019, while the share of buyers ages 18–39 dropped 13%. Lack…
