According to an article at MultiBriefs.com, the market of first-time homebuyers was at a near-record low in 2015, accounting for less than one-third of new home purchases. The good news is, this three-year trend has begun to tick upward in 2016, largely driven by the millennial home buyer, making up 35% of new home sales this year.
Critical to understanding this trend is the make-up of the marketplace for new home buyers. Based on a variety of market surveys, millennials were responsible for anywhere from 42% to 61% of the new home buyer market. These are home buyers below the age of 36, who are buying a home for the first time.
This infographic, borrowed from Zillo.com, details much of this home buying trend among millennials, according to their research:
Understanding Millennial Design Clients
“Millennials are shaping the market more than anyone realized. In fact, half of all buyers are under 36 and half of sellers are under 41,” said Zillow Chief Marketing Officer Jeremy Wacksman, referring to results from a survey of more than 13,000 homeowners, sellers, buyers and renters that are part of the new Zillow Group Consumer Housing Trends Report.
Beyond these facts, the research shows growing diversity among the millennial home buyer demographic, from racial to cultural differences, even though an increasing number of this youthful group of home buyers seems to be heading for the suburbs – with 47% of millennials choosing to forgo living in the city.
For interior designers looking to build or grow their business, understanding and marketing this increasingly influential and important demographic group is critical to your long-term business plan.
To help you understand the millennial home buyer in more depth, we recommend these earlier posts from the TD Fall Blog:
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