Where Millennials Are Buying Homes

You may have heard that the millennial generation – now in their 20s to early 20s – has been slow to embrace the home ownership milestone. That has started to change in the last 2 years, however, and this generation now comprises 32% of the home buying market nationwide. Where are they buying homes? According to CNN Money, our own Grand Rapids, Michigan, is one of the top 10 cities for millennial home buyers, based on mortgage data.

Statistically, the largest number of buyers is always those in the 25-34 year old age range. However, millennials have had a different experience than previous generations, and they have challenges that previous generations have not had to face. For many, the job market was soft upon their graduation, and they also faced unprecedented student loan debt, credit card debt, and car loans. This generation is now entering the home ownership market in their own way, with a few unique twists, like a greater tendency to buy before marriage, own for shorter periods of time, and flip with enthusiasm.

Given that backdrop, why is Grand Rapids real estate so attractive to millennials? For some of the same reasons that all categories of buyers are attracted to this market.

• Social landscape : Between its Beer City USA designation, Artprize, the great outdoors, and other perks, there is a lot going on in Grand Rapids that attracts a younger demographic.
• Jobs : Grand Rapids is one of the National Association of Realtors’ top 10 cities for millennials to get a job right out of college, and is second only to Austin in job creation. The new Switch data center coming to the former Steelcase pyramid is just one of the latest examples of tech growth that will continue to attract young professionals.
• Affordability : Millennials are particularly value-focused buyers. While rental rates continue to rise here as well as nationwide, median home prices in Grand Rapids remain well below the national level.
• Proximity to home : Grand Rapids remains the second largest city in Michigan. With 15 colleges in the surrounding area, many young college graduates are attracted to settling here upon graduation.

For millennials who want to live in the city, there are many options near the downtown area, but many are also attracted to nearby areas that are close to work, in thriving, walkable neighborhoods. To learn more about home ownership around Grand Rapids , contact The Sprich Group.

Photo: Nicholas Raymond ( some rights reserved )