Millennials are moving more, spending more and buying more
Continuing a trend that stretches back to one year ago, Millennials are still dominating the homebuying landscape, taking on more mortgages than previous generations.
A report from Realtor.com says that at the end of the third quarter, the Millennial share of mortgage originations increased 3% from last September, coming in at 46%.
(Image courtesy of realtor.com. Click to enlarge.)
Meanwhile, Gen X and Baby Boomer shares continued to fall, to 35% and 17% this year, from 37% and 18% last year, respectively.
As for primary home loan originations, Millennial shares increased also. In September, Millennial share was 44%, up from last year’s 40%.
Gen X shares fell from last year’s 41% to 39%, while Baby Boomer shares fell to 16% from 17% last year.
Millennials were also found to move once every two years, a study from Porch said. Gen Xers moved about every four years and baby boomers stayed in the same place for nearly six years at a time.
According to the report, Millennials are buying more expensive homes, too.
The median price of a primary home purchased by Millennials went up 6%, to $250,000 compared to last year. Generation X and baby boomers only increased their purchase prices by 5% and 2%, respectively.
(Image courtesy of realtor.com. Click to enlarge.)
Millennials are also increasing the size of loans they are taking out to buy a home, as this generation had a median loan amount of $231,590 in September. This is 7.3% higher than last year.
This growth in mortgage debt undertaken by Millennials outpaces that of both Baby Boomers, which grew by 2.6%, and Generation X, which grew by 4.4%.
More than three out of four millennial home buyers (76%) say that their most wanted bathroom feature is both a shower stall and tub in the master bath, according to a recent report published by NAHB, What Home Buyers Really Want (2019 edition).
The survey indicates that millennials want larger bathrooms to accommodate certain amenities. For example, the second most popular bathroom feature among this key demographic is a double vanity (75%), followed by a linen closet in the master bath (73%), a whirlpool tub (70%) and a private toilet compartment in the master bath (68%).
A dressing/make-up area and a white toilet, tub and sink are also important to millennials, with 67% reporting that each of these items are desirable or essential/must have features.
Millennials also expressed interest in having specific shower features: 66% want multiple shower heads in a master bath and 64% desire a body spray panel in a master bath [shower head(s) plus spray massage jets].
A majority of millennials also prefer a granite vanity (64%). See the Figure 1 chart below for more details. Note: move your cursor along the Figure 1 and Figure 2 charts to view more details.
The report also reveals a wide disparity among bathroom wants between millennials and seniors. The Figure 2 chart below shows at least a 20-point difference among these two demographic groups on a variety of bathroom features.
For example, 46% of millennials desire dual toilets in the master bath while just 14% of seniors prefer this feature. Fifty-five percent of millennials want his and hers baths vs.only 25% of seniors and 70% of millennials want a whirlpool tub in a master bath, compared to 44% of seniors.
OKLAHOMA CITY (KFOR) - The Oklahoma Home Builders Association says small towns are cracking down on housing ordinances and it could price people out of living there.
Cities across the state are starting to regulate products that are used to build new homes.
“They’re going after regulating small homes which is what we call affordable homes, or houses that help people that are in the lower socioeconomic brackets being able to purchase their first home,” said Mike Means the Executive Vice President of the Oklahoma Home Builders Association.
Congratulations to Jorie Helms, Director of Communications and Outreach, for being selected as a 2019 NextGen Under 30 winner! Now in its ninth year and expanding its scope and state-wide reach, NextGen Under 30 recognizes and encourages the next generation of innovative, creative, and inspiring individuals who push the boundaries in various categories of endeavor. In addition, award winners are selected based upon their participation in and contribution to their communities. Jorie was selected from over 1,000 nominees by a panel of respected business and civic leaders who served as judges.
Jorie started at the Oklahoma Home Builders Association in 2017 where she focuses on Outreach projects, Member engagement, Social Media marketing, and much more. Jorie is also a proud member of The Association for Women in Communications.
A recent study by NAHB reveals that millennials have a much stronger desire for certain bathroom features relative to older generations.
The report compiled survey data between 2007 and 2018 and found that the share of home buyers who want whirlpool tubs declines as the older generations age, but stays relatively constant for millennials. As of 2018, 70% of millennials expressed a strong preference for whirlpool tubs, compared to 62% for Generation X, 47% for baby boomers and 44% for seniors. See Figure 11.1 below.
Meanwhile, the share who want a dressing area increases for millennials while falling or staying constant for other generations (Figure 11.2).
Those who prefer his and her baths increases dramatically over the years for millennials and shows no real trend among the other generations (Figure 11.3).
Figures 12.1 through 12.4 below center on kitchen features. All four generations show an elevated preference for built-in kitchen seating. Of note is the increasing upward trend for millennials who desire trash compactors and built-in kitchen seating.
Finally, for the specialty rooms in Figures 13.1 through 13.3, millennials show a higher preference for exercise rooms, game rooms and media rooms than the other generations. Moreover, the gap between millennials and the older generations is quite substantial in 2018.
