How Much Millennials Are Actually Spending on Their Starter Home
They’ve got the down payment covered.
Updated Oct 11, 2018 10:40 AM
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Millennials might be known as “generation broke,” mainly due to mounting student loan debt, but that doesn’t mean they’re not being smart about how they spend their money—particularly when it comes to real estate. According to a recent survey of 600 U.S. residents, more than half of young home buyers (57 percent) are purchasing houses in the $100,000 to $300,000 range. Hey, you’ve got to begin somewhere.
Forty percent of millennials are financing their down payment with personal savings, and the majority of them cited debt as the main reason they’d delay shopping around, so it’s clear they’re thinking this whole ownership thing through. Assistance programs are also more popular with younger generations than they are with Gen X.
So if $200,000 is the sweet spot for planting roots, where exactly does that leave you? Possibly in the Southwest—more specifically, Oklahoma City, which was recently dubbed the most affordable place for first-time buyers in 2020. As far as the number of bedrooms goes, this budget actually aligns with what new homeowners are looking for in a space anyway. (Unlike baby boomers, millennials prefer cozier bungalows over McMansions.) Also, they’ve got their heart set on modern architecture, not fancy farmhouses and ranch-style residences. Clean lines and an open floor are the signs of a fresh start.
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