Call it the influence of grandparents — a number of home buying characteristics of younger millennials are replicating the buying desires of those in the silent generation, according to the National Association of Realtors’ 2020 Home Buyer and Seller Generational Trends report.
The NAR report found that despite the obvious age gap between millennials (those between 22 and 29 years old) and those that make up the silent generation (those from 74 to 94 years old), the two groups are likeminded in terms of buying preferences. Among both age groups, proximity to friends and family is a high priority, with 53% of homebuyers in both age groups citing it as a major factor that would influence their decision in selecting a neighborhood.
“The silent generation — older Americans who are typically grandparents and great-grandparents — for years have prioritized living near family and other loved ones,” said Lawrence Yun, NAR’s chief economist. “But it was surprising to see younger millennials with home buying preferences and ideals similar to older segments of the population.”
Another similarity between the two groups is seen in those classified as “recent buyers.” Younger millennials and silent generation buyers who purchased a new home, were the most likely to make the purchase due to the amenities a newly constructed home provides. This aligns with norms of older generations but represents a new trend for younger homebuyers.
Although younger homebuyers closely mirror older buyers, the two groups are not totally in sync. Younger millennials have the highest share of unmarried couples buying homes at 21%, whereas only 3% of homebuyers in the silent generation and 3% of older boomers were unmarried at the time of purchase. Older millennials have the highest share of married couples, 67%. Another area where younger homebuyers stood apart from other buyers was in their living arrangements. Thirty-three percent of homebuyers aged 22 to 29 reported living with parents, relatives or friends prior to buying a home. Of this 33%, 13% paid rent and 20% paid no rent. The next highest share was homebuyers aged 30 to 39, where 13% lived with parents, relatives or friends. This same living situation was found in only 5% of buyers aged 65 to 73, and in 6% of buyers ages 74 to 94.
