In a recent report published by Marcus and Millchap, it is not surprising that, millennials led home purchase activity for the fifth year in row. As of last year, millennials now represent 36 percent of the buyers. The oldest millennials are now 37, and as this generation ages and starts families, a wave of potential new buyers are moving into the market. Approximately two-thirds of first-time buyers in 2017 were millennials, but housing affordability remains a concern in 2018 as home listings under $200,000 continue to shrink. Homes in this price tranche have fallen 59* percent since May 2012.
As home prices in urban areas have appreciated faster than those in the suburbs, millennial buyers active in the market are reversing a trend of moving to the core. For a third straight year, more than 50 percent of homes sold to this generation during 2017 were in the suburbs as they seek out affordable housing options. Over the next five years, the young adult population in downtown cores is expected…….READ THE ENTIRE REPORT.