Millennial Homebuyers: Statistics And Tips

Hispanolistic/Getty Images: Illustration by Issiah Davis/Bankrate

Millennials are the largest generation in the U.S. This massive demographic was poised to reshape the housing market, but that hasn’t quite happened in the way we might’ve expected. While millennials value homeownership, high costs have hampered their ability to buy. Here are the latest statistics on this homebuying generation.

Millennial homebuying trends and statistics

Are millennials buying homes?

Millennials value homeownership: 74 percent cite it as a component of the American Dream, according to Bankrate’s 2025 Home Affordability Report.

However, they’re also hindered by affordability challenges. Blame it on the triple whammy of pandemic-elevated home prices, tight inventory and higher mortgage rates.

When it comes to reasons for not currently owning a home, millennials primarily point to two hurdles: their incomes aren’t high enough (60 percent) and home prices are too high (65 percent), according to Bankrate’s 2025 Home Affordability Report.

In addition to being held back by financial considerations, many millennials are in a general pattern of reaching life milestones later. In 2020, the median age for a man’s first marriage was above 30 for the first time in history, according to Census estimates, while the median age of a first-time bride was above 28, also for the first time.

Subsequently, millennials are starting their families later, and waiting to buy homes. The typical first-time homebuyer was 38 years old in 2024, according to the National Association of Realtors (NAR).

In years past, millennials represented the biggest share of buyers, mounting as high as 43 percent in 2022. However, boomers (both younger and older) made up the largest share of buyers in 2024 at 42 percent, according to NAR.

To sum it up, some of the obstacles millennial homebuyers are facing when it comes to buying a house include:

• Elevated home prices
• Limited inventory
• High interest rates
• Income not high enough
• Not enough saved for a down payment
• Credit needs some work
• Too much debt

What are millennials looking for in a home?

Millennials buy larger homes compared to other generations. In 2024, the typical older millennial purchased a home sized 2,360 square feet, while the typical younger millennial purchased a home sized 2,200 square feet, according to NAR. Older generations (except for Gen X) tended to buy homes around 2,000 square feet or less.

With fewer homes on the market, however, millennials have had little choice but to dial back their expectations and make compromises. Bankrate editor Laurie Richards and her husband bought their first home in 2023.

“My husband and I had originally wanted a bigger home, but we made the hard decision to purchase a starter home in lieu of jumping straight to our forever home,” Richards says. “In the end, this freed up more funds in our budget to go toward any needed repairs or expenses that came with waiving the inspection.”

Tips for millennial homebuyers

• Make a budget and stick to it. Our home affordability calculator can help you narrow down your price range based on income, down payment and more.
• Explore down payment assistance. Depending on your income and location, you might be eligible for a down payment grant, second mortgage or other type of help.
• Shop more than one mortgage lender. It’s not just about interest rates, but the all-in cost of your loan, including lender fees. Compare at least three mortgage offers to see what different lenders charge and find the best deal.
• Read lender reviews. While shopping for a mortgage lender and before picking a lender to proceed with, be sure to read lender reviews online. Doing so can provide an understanding of other borrowers’ experiences and overall satisfaction.

FAQ

• What years are millennials?
  

  Millennials are those born from 1981 to 1996, according to the Pew Research Center. They’re preceded by Generation X and followed by Generation Z.

• When should I start the homebuying process?
  

  It all depends on your credit, savings and timeline. If you know you want to buy a home in the next year, for example, you should have your finances in shape relatively soon compared to someone who isn’t buying for several more years.

  If your credit needs work, take some time to improve it before applying for a mortgage. For a conventional loan, lenders look for a score of at least 620. (Note, if you’ve had a bankruptcy in the past, you’ll need to wait anywhere from one to four years to qualify for a loan.)

  You’ll also need time to save for a minimum down payment and closing costs (or line up a down payment gift, if someone plans to help you). Generally, those gifted funds need to be in your bank account at least two months’ prior to applying for a mortgage.

• What is the average age of a first-time homebuyer?
  

  The typical age of a first-time buyer is 38, according to the National Association of Realtors.