For years, experts insisted that Millennials would never affect the residential housing market simply because they would never purchase enough homes. But in 2021, Millennial homebuyers aren’t as rare as they used to be.

Stats on 2021 America’s Buyers and Sellers

They sure fooled the experts! For seven straight years, Millennials have purchased more homes than Baby Boomers. Today, Millennial homebuyers make up 37% of the market, which is the largest share. And they are finally purchasing single-family homes.

Ages of Home Buyers in 2021

According to the National Association of REALTORS® or NAR, these are the ages of homebuyers in 2021, in order:

  1. Generation Xers – 24%
  2. Older Generation Yers/Millennials – 23%
  3. Younger Baby Boomers – 18%
  4. Younger Generation Yers/Millennials – 14%
  5. Older Baby Boomers – 14%
  6. Silent Generation – 5%
  7. Generation Zers – 2%

Millennial home buyers have surpassed every other generation when it comes to buying homes in 2021. That is, with the exception of Generation X, which is only 1% higher in home purchases.

This year, Millennials flocked toward single-family homes, with 81% of their purchases selling between $150,000 to $350,000.

Ages of Home Sellers in 2021

The NAR reports the following ages for home sellers in 2021:

  1. Generation Xers – 25%
  2. Younger Baby Boomers – 22%
  3. Older Baby Boomers – 21%
  4. Older Generation Yers/Millennials – 18%
  5. Silent Generation – 8%
  6. Younger Generation Yers/Millennials – 4%
  7. Generation Zers – 2%

Generation X is ruling the selling market, with their parents, the Baby Boomers, right behind them.

Real Estate Market Challenges of 2021 for Millennial Homebuyers

The housing market faced serious challenges during the pandemic of 2021. Some of them still exist in this fast-paced market:

  • Homes are in high demand
  • Home inventory remains low

This makes it very challenging for first-time homebuyers and younger generations to break into the real estate game. But it’s not impossible. There are strategies and steps they can take if they truly want to own their own homes.

Millennial Home Buyer Stats Continue Increasing
Millennial Home Buyer Stats Continue Increasing. Photo by Andrea Piacquadio from Pexels.

Millennial Homebuyers: 7 Tips for Getting Approved for a Home Loan

Shopping for a home is useless if you don’t know the home buying process and what you need to qualify for a mortgage. That’s why getting pre-qualified before house hunting is so important.

Here are seven tips to help you get approved so you can soon become a Millennial homeowner:

1. Student Loans & Debt

Many Millennials have recently graduated from or left college. This leaves many of them in debt, thanks to student loans. A NAR report shows that right after student loans, the next two largest expenses keeping Millennials from saving for down payments for homes are:

  • Car Loans
  • Credit Card Balances

2. Credit Score

Millennials must understand the importance of good credit when planning to buy a home. You must check your credit regularly, almost daily, to ensure that there are no mistakes.

If needed, approach credit repair in a way that consistently improves your credit score. The better your score, the better the interest rate your lender will offer.

Keep in mind that every consumer is entitled to one free credit report per year from all three major credit bureaus:

You can order all three separately. Or you can go to Annual Credit Report and grab all three from one place. This site is the official site of the credit bureaus above.

3. Down Payment

As with anything else, cash is king. Having at least 20% to put down on a home improves your chances of getting approved for a conventional loan. Some Millennials qualify for FHA loans at 3.5% down, but this also decreases the cost of homes you qualify for purchasing.

Then, there are those dreaded closing costs. You may find a seller willing to pay them. But that’s not guaranteed. So, your best bet is to save, save, save like never before. That way, when you’re ready to buy, you have what you need.

Down Payment Assistance

There are many down payment assistance programs Millennials can take advantage of when trying to buy a home. FHA provides grants to help first-time buyers with down payments.

There are a few specialized FHA down payment grants for homebuyers in Georgia for 2021. Each one has specific requirements that must be met before applying. That means you need to check them out now before you’re ready to buy, so those requirements are met when the time comes, such as:

  • Homebuyer Counseling
  • Homebuyer Workshop
  • Individual Counseling
  • Homebuyer Educational Course

4. Pre-Approval

Shopping for a home without a pre-approval letter is a waste of a Millennial’s time, as well as the real estate agents involved. Most agents won’t even deal with you if you don’t have one.

Knowing that your lender has already pre-qualified your loan gives them the confidence they need to actively search for the home you want. Your pre-approval also tells the agent how much you can afford to spend on a home based on what the bank is willing to lend you.

When choosing a lender, make sure they offer competitive mortgage rates. If you’re having problems finding a lender to pre-qualify you, there are other unconventional routes you can take, such as hard money lenders, property investment partners, even Keller Williams Concierge AKA Keller Offers can help.

Video: BRG Keller Concierge Ready To Sell Program

Are you a Millennial preparing to buy a home? Check out the video below to learn more about Keller Offers:

5. Mortgages

Mortgage broker vs mortgage banker. What’s the difference?

What Is a Mortgage Broker?

In most cases, a mortgage broker is simply a middle-person between you, the Millennial buyer, and investors and big banks. You give the broker your information and that person passes it on to big lenders.

This tends to slow down the homebuying process because investors may have last-minute questions for the buyer that must go through the broker first. Slowing down the process could cause you to lose out on the deal altogether.

What Is a Mortgage Banker?

Mortgage bankers, on the other hand, do all the loan underwriting in-house. The loans get sold to investors they work with every day. They are usually in the same building and/or office, in most cases, right down the hall.

That means if they have any questions for the underwriters, they can get them answered immediately. Therefore, working with a mortgage banker versus a mortgage broker is key to a smoother real estate transaction.

6. Real Estate Agent for Millennial Homebuyers

It’s important to choose a professional real estate agent that’s trustworthy and knows the local Atlanta housing market. Since Millennials just became major players in the market in the last few years, most know nothing about the homebuying process.

For that reason, you also want to choose a REALTOR® – versus a real estate agent – who aims to educate clients instead of just taking over the transaction. You want an Atlanta REALTOR® whose brokerage believes in guiding you through the buying process every step of the way.

Atlanta's Largest Residential Real Estate Organizations: Keller Williams is #1
Atlanta’s Largest Residential Real Estate Organizations: Keller Williams is #1

Keller Williams Realty is a team of training experts. They provide their agents with award-winning coaching programs that push real estate forward year after year.

This helps keep them #1 in the Atlanta residential real estate industry, with over $17.5 BILLION gross residential sales volume from closed transactions in 2020.

7. Atlanta Home Shopping

Now, it’s time to start shopping for a home in the Atlanta housing market. And in today’s market, Millennials have choices when it comes to what they can buy:

  • Condominiums
  • Townhouses
  • Single-Family Homes
  • Multi-Family Properties
  • Mixed-Use Real Estate

Some Millennials are even buying short-term properties. Because so many still live at home with their parents, these are outstanding buys for them. They live in the homes while they’re not being rented out.

Then, they rent them out to vacationers and businesspeople for days or weeks at a time while staying at home with their parents. When the short-term rental is up, they simply move back into the homes temporarily.

Millennials: Now Is the Time to Buy a Home

One downside in today’s real estate market in Atlanta is that home prices are much higher than ever before, thanks to demand being higher than supply. But the upside for Millennial homebuyers is that mortgage interest rates are at record-breaking lows.

That means this is a good time for Millennials to buy property, whether it’s a home for themselves or for investment purposes. So, if your credit is good, why not find out the home prices you qualify for in today’s market?

Kereen Henry Realty

Kereen Henry is The Closer
Kereen Henry is The Closer

Kereen Henry is Atlanta’s New Age REALTOR® and a real estate agent under the Keller Williams brokerage. Check out her 5-star reviews to learn how she’s helped past clients get through the buying and selling processes.

Then, head on over to her Buyer Questionnaire with your pre-qualification letter.

If you need unconventional funding, she and Keller Offers can help with that. Use the form below to schedule a free consultation with Kereen Henry to find out what options you have for becoming a Millennial homeowner.

Call Me Now


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