The millennial home buying guide

Should you buy a home or condo?

When deciding to buy a home, the options are simple. You can choose to buy a single-family home, condominium, townhouse, or co-op. The type of home you buy depends on your needs, budget, and in many cases, your desired maintenance level. For many millennials, the choice has been buying a condominium!

According to CoreLogic,

“Last year about 43% of all condo home-purchase mortgage applications were submitted by FTHBs… Similarly, the data show condos were more popular with young homebuyers and empty nesters. For instance, 21% of all condo home-purchase mortgage applications were submitted by buyers aged 18 to 30, compared with just 17% of all single-family home-purchase mortgage applications by the same group in 2018.”

Millennials Are Increasing the Demand for Condominiums

When deciding to buy a home, people are presented with many different options. The type of home you buy depends on your needs, budget, and in many cases, the desired maintenance level. For many millennials, their choice has been buying a condominium!

According to CoreLogic,

“Last year about 43% of all condo home-purchase mortgage applications were submitted by FTHBs… Similarly, the data show condos were more popular with young homebuyers and empty nesters. For instance, 21% of all condo home-purchase mortgage applications were submitted by buyers aged 18 to 30, compared with just 17% of all single-family home-purchase mortgage applications by the same group in 2018.”

With home prices increasing year-over-year and workforce working longer hours, it makes sense that millennials are choosing to purchase condos over single-family houses. As a result, the demand for this type of home has been increasing.

As this graph shows, millennials are driving much of the condo demand now and will continue to do so in the coming years. As supply begins to catch up to demand, you’ll start to see fewer options available at an affordable price in the market.

All this to say, it’s not that millennials have renounced the dream of owning a single-family home in turn to be condo dwellers for the rest of their lives.

It’s just that at this point in their lives, millennials are opting for cost-efficient, dynamic and urban options which happen to be condos.

Bottom Line

If you are a millennial considering purchasing a home, you may find yourself in a condominium as your first home. If you would like to determine which type of home best fits your needs, let’s get together to evaluate your options! As an urban specialist, I am committed to staying up to date on all the condo market trends in Seattle. 

Let's connect and take the first step to owning your first home. Contact Beshir >>