Although this demographic spent approximately $514 billion last year in the housing market, 53 percent of Millennial buyers needed to make multiple offers to buy their first home
. However, only 39 percent were able to reach the downpayment level of 20 percent or more.
For those who were able to make a downpayment
, 29 percent got help from friends or family, while 31 percent managed to gather funds from multiple sources. Ultimately, 37 percent of Millennial buyers stated they went over their budget in homebuying, compared to 29 percent of all buyers, and 62 percent of Millennials admitted looking for rental housing at the same time they were trying to buy a house.
"In many cities across the U.S., the housing market is extremely competitive, especially for first-time buyers who are looking to purchase a starter home," said Zillow Chief Economist Svenja Gudell. “Young buyers often start their careers in fast-growing cities in which the market is particularly tough—and they're trying to save for a downpayment while making record-high rent payments.”