Although the climate of the COVID-19 pandemic caused some millennials to put their home buying plans on hold, many members of this generation are embracing the unknown and taking full advantage of record-low mortgage rates to buy a house – and these numbers are only growing as this generation gets a slice of homeownership pie.
The National Association of Realtors’ annual report suggests that millennials age 22 to 40 represented 37% of all buyers and have held the largest share among homebuyers every year since 2014.
Millennials were also more likely to be first-time homebuyers than members of other age groups. Eighty-two percent of younger millennials age 22 to 30 and 48% of older millennials age 31 to 40 were first-time homebuyers last year.
LendingTree analyzed where millennials are looking to buy, and what do you know? Boston was ranked #2 for most mortgage purchase requests made on the LendingTree platform across the nation’s 50 largest metros from Jan. 1 through Dec. 15, 2020.
Boston Millennial Home-Buying Insights (2020):
- Share of mortgage requests coming from millennials: 59.09%
- Average millennial age: 31.48
- Average credit score among millennials: 705
- Average down payment amount among millennials: $78,062
- Average requested loan amount among millennials: $416,267
As the NAR report suggests, 88% of all buyers purchased their home through an agent; more particularly, 91% of buyers 30 years and younger and 89% of buyers 31 to 40.
Buyers from all generations primarily wanted their agent’s help to find the right home to purchase. They were also looking for help to negotiate the terms of sale and to help with price negotiations. The oldest and youngest age groups (22 to 30 and 66 to 95) were more likely to want their agent to help with paperwork. Additionally, help understanding the purchase process was most beneficial to buyers 30 years and younger and 31 to 40 years.
Those looking to sell their homes also turned to agents – in fact, 9 in 10 home sellers worked with an agent to find buyers for their properties.