An increasing number of new homebuyers are entering the U.S. housing market, according to data presented in the first annual Zillow Group Report on Consumer Housing Trends.
Zillow has determined half of today’s homebuyers are under the age of 36 and 47 percent of people buying a home are doing so for the first time. Eighty-three percent of buyers are looking for a single-family home and more than half (52 percent) live in the suburbs; among Millennials, only 47 percent are seeking to live in the suburbs.
But not every buyer is fixated on homeownership or able to achieve their dream house: 52 percent of buyers said they also considered renting, while less than half (46 percent) of buyers got the first home on which they made an offer. And while 56 percent of buyers are able to save for a downpayment a little at a time, 32 percent found their savings were inadequate and needed to rely on other financial sources—including loans, gifts and cashed out retirement savings—to make their downpayment.
Of course, inventory continues to be a major concern in many markets, and the majority of current homeowners do not appear to be in a hurry to move out. Zillow also found that 63 percent of those with a house for sale are selling for the first time.
And as for the renters, Zillow reported that this group is disproportionately made up of women and people-of-color, with most earning less than $50,000 a year. Their top concerns for upgrading to homeownership are budget, safety and finding a home that allows pets.