GEN Y Takes The Lead As The Largest Group Of Homebuyers

In its new annual survey of recent homebuyers, the National Association of Realtors identified GEN Y also referred to as “millennials” (33 and younger) as the largest group of homebuyers in the U.S. The survey breaks down homebuyers by generation, and shows GEN Y leading by 31%, with GEN X (ages 34-48) at a close second at 30%.

The survey also highlights an interesting fact- that millennials make up 78% out of all the first-time homebuyers.

largest group of homebuyersBut there is another side to this story. Although millennials are eager to purchase their first home, the majority is challenged by a number of factors; and the single most challenging of all is the high amounts of student debt.

Student Debt by Numbers:

$1.2 Trillion: Total of outstanding student loans in the U.S.

Source: Consumer Financial Protection Bureau

$30,000: The average amount of student debt, when divided among 40 million borrowers.

Source: Consumer Financial Protection Bureau

70%: The percentage of college graduates who leave school with outstanding debt.

Source: The Federal Reserve of New York

20%: Percentage of households that carry student debt.

Source: Pew Research Center
And so this has caused a major shift in the past year. Lawrence Yun, the chief economist at the National Association of Realtors states that in the past six months, fewer than 30% of all home sales were to first-time homebuyers. Yun states, “Typically it should be about 40 percent to 45 percent. And I believe the key reasoning is that many of the younger households, they are saddled with student debt.”

At DiversyFund, we offer great investment opportunities for the largest group of homebuyers as well. Real estate crowdfunding investment opportunities for all.