Like the baby boomer generation that raised them, millennials are growing up and moving to the suburbs. But unlike previous generations that typically moved from city apartments to suburban houses, many are going right from their parents basements to suburban home ownership.
Prior to looking for their own homes to purchase, nearly a quarter of millennials, individuals aged 20-35, have opted to save money and live with their parents. And of those who ventured out on their own, more than half eventually returned to their parents™ home by 27. Because of the changing trends, the path to home ownership is changing.
Today, millennials are the fastest growing segment of homebuyers in the market. New reports from Pew Research and the National Association of Realtors have found that millennials made up the largest percentage (35%) of home purchases in 2015, an increase of three percentage points from 2014.
Skipping the apartment phase and going directly to a single-family, suburban house, millennials have decided they can often get more for less money outside of urban areas.
Yet, despite desiring suburban value, this group of homebuyers still craves urban lifestyles and seeks communities close to urban areas that still provide perks of city living. Many of Bostons immediate suburbs deliver this exact urban-suburban model, with easy access to public transportation, walkability, and a variety of amenities, shops, and restaurants. In our own recent sales, we've seen this home-buying trend come to life among millennial clients, particularly in Newton and Brookline.
So, as millennials grow in the suburban home-buying market, the real estate industry and even city planners must adjust to accommodate a new generation of buyers.