Millennials are more confident than any other age group that their recent home purchase was a good financial investment, according to a study released this week.
The 2013 National Association of Realtors Home Buyer and Seller Generational Trends evaluated the generational differences of recent home buyers and sellers and found that while eight out of 10 recent buyers considered their home purchase a good financial investment, the number was even higher, 85%, for younger buyers under the age of 32.
“Homeownership is an investment in your future, and is how many younger American families begin to accumulate wealth,” said Paul Bishop, NAR vice president of research. “The oldest of the millennial generation are now entering the years in which people typically buy a first home, and despite the recent downturn, homeownership still matters to them.
The study found that the largest group of recent buyers was Generation X Americans, those born between 1965 and 1979, who comprised 31% of recent purchases, followed closely by millennials, sometimes called Generation Y, those born between 1980 and 2000, at 28%.
The sheer size of the millennial generation, the largest in history after baby boomers, is expected to give a powerful boost to long-run housing demand, Bishop said, though in the short-term mortgage accessibility and student debt repayment remain challenges.