For those wondering where the Millennials are living, a new report from Zillow
estimated that almost half of this demographic are living in the suburbs—and the majority stay in the same location when they buy a home.
According to Zillow, Millennials made up 42 percent of homebuyers last year, more than any other generation, and most of these youthful property seekers were buying a home for the first time. Zillow determined that almost 50 percent of Millennial homeowners live in the suburbs, while 33 percent live in an urban neighborhood and 20 percent live in a rural area. Of the Millennial buyers who moved in the past year, 64 percent stayed in the same city while only seven percent moved to a different state.
As for the concept of new homebuyers aiming for the traditional starter home, Zillow found that Millennials are spending $217,000 for a home that is about 1,800 square feet, which similar in size to the homes being sought by older generations. And a few markets have a surplus of Millennials: almost 30 percent of the population in San Diego and Austin while over 25 percent of the population in Los Angeles, San Antonio and Columbus, Ohio, consist of Millennials.
"Millennials have delayed home buying more than earlier generations, but don't underestimate their impact on the housing market now that they're buying," said Jeremy Wacksman, Zillow Group chief marketing officer. "As members of this huge generation start moving into the next stage of life, expect the homeownership rate to tick up and suburbs to change to suit their urban tastes. We're constantly learning about this young group of home buyers—we're finding that they are more similar to older generations than many thought. Their views on community and homeownership are pretty traditional, and they don't all fit the urban stereotype you might have in your head."