Millennials are a driving force behind many societal changes, but there’s one area they’re changing that you may not expect: The real estate market.
A new report from Zillow zeroed in on housing trends nationwide and found habits of millennial buyers are a driving force behind the U.S. housing market. The 200-page Zillow Group Report on Consumer Housing Trends is the largest and most comprehensive survey of consumer real estate habits ever conducted, according to the Seattle-based company.
The report found that millennials ages 18 to 34 comprise 42 percent of all home buyers. Although many millennials choose to rent in part because coming up with a down payment can be difficult, many have home-ownership dreams like their parents once did.
“Young home buyers and sellers share their grandparents’ romantic notions about home ownership, and we’re finally seeing their home buying dreams come true in the data,” said Jeremy Wacksman, Zillow Group chief marketing officer.
The report finds these millennial home buyers are largely white, married, likely to have a college degree and earn a median income of $87,500 per year. With that said, millennial home owners are more diverse than the larger pool of all homeowners. Millennial buyers are more likely to be Hispanic or Latino than their older counterparts, for example.
Half are buying a home for the first time, and they spend a median of $200,000 on their first home.
In San Francisco, where the median home value is $1.1 million, first-time home buyers would be extremely hard-pressed to find a home at that price. It’s no wonder that the study finds in the West — which comprises nine states — home buyers are more likely to consider condos, townhomes or attached homes.
As one might expect, the group is also bringing its digital savvy to the home buying game. The majority of home buyers (87 percent) rely on online sources to help with their house hunt, but many (75 percent) also rely on a real estate agent or broker. In addition to these two sources, the report finds millennials overwhelmingly rely on their personal network — which includes friends, neighbors and relatives — to help with their search.
We’ve rounded up four homes suitable for millennial home buyers. They include three single-family homes and one condo and range between $628,000 and $700,000. They’re in Visitacion Valley, Outer Mission, Eureka Valley and Dolores Heights.