Since 2013, the National Association of REALTORS® has produced the Home Buyers and Sellers Generational Trends Report. This report provides insights into differences and similarities across generations of home buyers and sellers. The home buyer and seller data is taken from the annual Profile of Home Buyers and Sellers (Highlights From the Profile of Home Buyers and Sellers).
Buyers continue to finance their home purchases, similar to years past. Seventy-four percent of home buyers financed their home purchase—a share that decreases as the buyer’s age increases. Younger buyers continue to depend on savings for their down payment, while older buyers use proceeds from the sale of their previous residence. Twenty-six percent of Younger Millennials received down payment help in the form of a gift or a loan from a friend or relative. Buyers overall were delayed primarily by high rental costs, credit card debt, and student loans. In fact, 39% of Younger Millennials reported student loan debt, with a median balance of $30,000, compared with 27% of Older Millennials, with a median balance of $40,000. While only 7% of Older Boomers had student loan debt, those who did had a median balance of $24,000. This may be due not only to their personal educational loans but also to the accumulation of debt from their children’s education loans. It was most common for buyers to cut spending on luxury/non-essential items and entertainment to save for their home purchases.
