Millennials Returning to the Suburbs But Not Their Parent’s Suburbs.
People in their 20s and early 30s make up the largest segment of home buyers in the nation, according to the National Association of Realtors (NAR). “Their buying power is huge,” said Jessica Lautz, NAR’s managing director of survey research. “They are definitely a force in the market. They are overtaking the baby boomers.”
An NAR survey finds that millennials make up a third of home buyers (baby boomers do, too, but they are a few percentage points behind). But, millennials also make up two thirds of first-time home buyers, according to the NAR.
But while we often think of millennials as a generation living in gentrifying neighborhoods in urban centers, 49 percent of millennial homebuyers are in fact moving to the suburbs, according to the NAR. They are moving out of the city and away from the urban living culture with which they are closely associated. Why? Two reasons. Price and a longing to reconnect with their past. They are looking for greater value then what they are spending on rent. And millennials are growing up, having families and want the same lifestyle that their parents provide them, but with a twist.
While many millennials are buying single family detached homes, they are often buying older homes to fix up and put their own signature on the home. They also do not want any suburb; they want a suburb with a feel of the city – walkability, convenient access to public transportation, good schools within a short walking distance, and an organic market down the street. In other words, urban living in the suburbs.