“If I don’t hear the word millennial at least 10 times a day, I think I might have lost my hearing” said Norcom’s Greg Radding on his podcast, Radding’s Rapport, at the end of February. Greg interviewed Mike Fratantoni of the Mortgage Bankers Association about the state of the mortgage market. Among other key points, they spoke about how millennial first-time homebuyers are now one of the largest drivers of the US market, and their presence will undoubtably have an impact on the mortgage industry.  

What it boils down to is in the United States, the most populous age group today are millennials. The typical first-time homebuyer is 31 or 32, so millennials looking to buy homes today are, as Fratantoni explained, “the leading edge of the wave of tremendous housing demand.” This explains why many in the industry believe the purchase market will continue to grow over the next few years. Whether we will see the demand in terms of millennial homebuyers themselves, or the potential landlords of millennial renters remains to be seen. 

One noticeable change for this age group from previous generations is that most millennials are waiting longer to begin the homebuying process. This change is due to multiple factors, including but not limited to, an increase in student loan debt. Furthermore, these homebuyers might be looking for different things in a first home than their parents or grandparents, and they’re taking their time to figure out the details! 


If you are looking to work with millennial first-time homebuyers, here are some points to keep in mind: 

  • Millennial borrowers value proximity to popular venues and shopping districts. 

  • One of the top factors for millennial first-time homebuyers is the quality of the local school district, whether they have a family yet or not. 

  • They are willing to put sweat into their home. Possibly due to the popularity of renovation themed tv shows, homebuyers have more confidence in buying an ‘imperfect’ home and investing in fixing it up and making it their own. 

  • Just as with news, commerce, and other fields, millennials are regularly turning to social media to help with the homebuying process. This generation relies on online reviews and recommendations to make purchasing decisions and to decide who to work with as a realtor or mortgage professional. 

  • Millennial borrowers are known for their in-depth research into a potential home before scheduling a showing or visiting an open house. 

  • Low or no down payment programs are quite popular with this group of first-time homebuyers. 


If you are a first-time homebuyer, we have more information here or reach out to your Norcom loan officer today!