Here’s How Much Money Millennial Homebuyers Are Making
Written by
Brooke Barley
Edited by
Zuri Anderson
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Though home prices are rising, millennials are still buying. Millennials are the largest share of homebuyers, according to a recent survey from the National Association of REALTORS.
The younger millennials — those aged 25 to 33 — are 17% of the total homebuying population, while older millennials make up 21%.
How much do millennial homebuyers make? Read on to find out what the survey showed.Â
Younger MillennialsÂ
Homeowners between the ages of 25 to 33 typically make between $85,000 and $149,999 a year. According to the survey, the largest number of younger millennial homebuyers (17%) make $100,000 to $124,999 a year. The next most common range is $85,000 to $99,999 at 13% of younger millennials.
Only 6% of younger millennial homeowners make under $44,999 a year. At the higher end, only 12% of homeowners between 25 and 33 make $200,000 or more. The median down payment amount for this age group was 10%, with three-quarters of young millennials saying that money came from savings.Â
The survey showed 54% of young millennial homebuyers are married, and a good portion of them are moving in with children. The survey showed that 18% of these young millennial buyers have a child under 18 living with them and 7% have three or more kids. When asked how many bedrooms their homes had, younger millennials overwhelmingly responded (87%) that they have three or more, suggesting that these homes could comfortably accommodate a growing family.Â
Older MillennialsÂ
Those who own a home and are between 34 and 43 shook out a little differently. According to the survey, the majority of older millennials (65%) make over $100,000 a year, with 24% of those earners making over $200,000 a year.
The median income for older millennials was shown to be $127,000, compared with younger millennials’ median income of $106,000. Older millennials were also more likely to have owned a home before: 40% of those between 34 and 43 have owned more than one home in their lifetime, compared to 20% of younger millennials. The median down payment for older millennials was 13%, which primarily came from savings.
Of these homebuyers, 66% were married and 65% were moving in with at least one child. Similar to young millennials, most older millennials (90%) bought homes with three bedrooms or more. When it came to bathrooms, 27% of younger millennials bought a home with only one full bathroom, compared with 17% of older millennials. Most older millennials (83%) opted for homes with two full bathrooms or more.
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