The national housing market is seeing a noticeable home purchasing trend within the millennial generation, according to a recent study by the National Association of Home Builders.
Between 2007 and 2018, the percentage of millennial home buyers who prefer purchasing a new home increased from 28 percent to 41 percent, according to the study conducted by the NAHB Economics team. This increase seems to be at the cost of building a custom-built home on a home owner’s lot, which fell from 37 percent to 18 percent during the same period.
Throughout those 11 years, preference for purchasing existing homes hovered around 40 percent.
Nearly 30 percent of Gen X, baby boomer and senior demographic groups prefer to purchase new homes built for sale and offered by a builder, while millennials have a clear upward trend in this category over time, and finish significantly higher than the other generations in 2018.
This indicates a shift in home ownership preferences for millennials. However, the existing home market remains nearly five times larger than the market for new homes, according to data from the U.S. Census Bureau and the National Association of Realtors.
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