"In many cities across the US, 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 down payment while making record-high rent payments."
Attitudes of millennial home buyers indicate that they think purchasing a home is not a sure thing, according to the survey. It found that 53% of young buyers make multiple offers to purchase their first home. Also, 62% said they shopped for a rental whey they were looking to buy a home.
The survey found that millennials are more likely to say they struggled to find a home within their price range. Thirty-seven percent of millennials buyers went over budget, while only 29% of all buyers did.
One of the biggest roadblocks millennial buyers is coming up with a down payment. The survey found that 39% of young buyers made down payments of 20% or more, while 21% made down payments of 5% or less. The survey further showed that 29% of millennial buyers received financial help from friends or family to come up with the down payment, and 31% used multiple sources to come up with a down payment.
This one thing is delaying homeownership by 7 years
First-time homebuyers bear brunt of unbalanced marketplace
Millennials are facing several challenges to homeownership despite being the largest generation of home buyers, injecting about $514 billion in the housing market over the last year, according to the Zillow Group Report on Consumer Housing Trends.