Millennials, the largest generation in the country’s history, are driving the real estate market this year as they are expected to take on more than half of the mortgages issued. In 2020 a large portion of millennials, roughly some 4.8 million, will be turning 30, which is believed to be the peak home-buying age, according to a recent report from Realtor.com. As millennials mature and begin to have families, with the oldest reaching 39 in 2020, their priorities are shifting to housing, the report noted. Older members have begun to move from large, expensive coastal markets such as New York, Los Angeles and San Francisco to mid-sized cities “in search of quality of life and amenities at a more affordable price point,” according to the report.
While millennials are searching for family-friendly lifestyles and affordable housing, the report continued, retiring baby boomers will be seeking sunnier weather, lower taxes and lower cost of living.