Millennials seem to be changing up the real estate industry – not only have they been later to enter the game than their predecessors, but they are also putting less money down for their down payments.
According to a recent study from Zillow, fewer than half of millennial homebuyers have put down 20% on their first homes. The survey also disclosed that it takes more than 7 years for homebuyers to save for a “normal” 20% down payment on an average home.
Among millennials in the survey, about half utilized a gift or loan from family or friends for a portion of their down payment – usually about one-fifth of the down payment. Savings made up a huge portion of being able to supply a down payment as well.
We’ll have to wait for the full arrival of Gen Zer’s to see whether or not this will be a generational or economic trend.