Millennials (age 25 to 34) are an important segment of buyers in the housing market. They account for about 30 percent of home sales on average across the country. Also, they account for about 60 percent of first-time home buyers. So, they are clearly a group having important effects on housing market and price trends. By the way, there are about 87 million millennials.
The millennials, like others, are seeing rising apartment costs, while interest rates are still low. About 75 percent of millennial home buyers had previously lived in apartments. The millennials generally prefer homes closer to the city, as you may have noticed in some of the home-related TV programs. The headwind that millennials face, as a group, are student loan debt and high apartment rents that reduce saving for that down-payment.
Interestingly, millennials are having a bigger impact in Texas, where a number of younger workers are moving into the state to take advantage of the growth of new jobs. For example, you have have heard about some companies establishing new offices or plants in the Dallas area.