When looking at the economy and projections for the future, pundits put a lot of pressure on millennials. It seems a person cannot read the newspaper without seeing articles about millennials ruining one industry or another. One commonly repeated “fact” is that millennials aren’t buying homes. But is this true? Let’s take a closer look.

The long-held myth

It has long been said that millennials are not buying homes because they are still living with their parents. The narrative has been that they are crippled with debt (including skyrocketing student loan debt) and that they are stuck in low-paying jobs. The idea is that because of this financial mix, they have been unable to buy homes. It is becoming increasingly clear that this narrative is not accurate.

The facts may surprise you

The truth is that according to a study by the National Association of Realtors, millennials have actually had the biggest share of home buying for five years. In 2017 alone, they accounted for more than one-third of home purchases.

Why are millennials finally buying?

While some of the uproar about millennials not buying homes was being exaggerated, it is true that they are now buying homes more than they used to. This is caused partially by the fact that millennials are getting older, which means their salaries are going up and their debt is going down. Many did live with their parents after college and now have some money saved, which means they are able to afford down payments. Finally, millennials are more likely than other current generations to believe that buying a home is a positive investment.

There is one big issue left: Starter homes are scarce

The actual problem right now is not millennials but is the housing market itself. No matter the age of the buyer, there is a serious lack of starter homes available. According to one popular real estate website, available starter homes decreased by about 15% in the first quarter of 2018 compared to levels from the previous year. Millennials are left with two options: Keep renting or get a home that is out of their price range.

In 2017 the choice they made was to pay more. About 33% of millennials chose homes that cost more than $300,000. Studies show as well that size isn’t the driving factor – they are actually more interested in amenities and location. They want their homes ready to move into and they want to be near transportation and / or attractions.

Staying on top of changing trends

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