Millennials Are Taking Over the High-End Housing Market

Though the Millennial generation initially seemed reluctant to embrace homeownership, buyers in their mid-20s to late 30s are flooding the housing market and accounting for 37% of total house hunters nationwide, says The Washington Post. Millennials have also surpassed baby boomers to become the largest living adult generation in the United States, and as more high-earning young professionals reach peak homebuying age, demand will remain strong for starter homes and high-end properties alike.

Tech hubs and popular cities like Seattle and D.C. attract droves of Millennials with six digit incomes, who are closing on homes ranging in price from $400,000 to $3 million, stirring up regional competition and driving prices even higher.

Jessica Lautz, vice president of demographics and behavioral insights at the NAR, says aging millennials — those born in 1990 and entering their 30s — are embarking on their prime home-buying years and will likely continue driving up home sales in many places.

“They’re reaching the age when they’re forming families and settling down,” Lautz says. She says buyers who bought their first home in their 20s are in an even better position to upgrade to larger homes with higher price tags. “They’re now entering the height of their careers and have the equity to purchase homes, especially higher-end homes.”

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