Millennial Buyers Plan For Smaller Down Payments

Saving enough money for a down payment can be a hurdle for some home buyers, especially first-time buyers. After all, unlike move-up buyers who can use the proceeds of their previous home's sale, first-time buyers have to come up with a down payment largely through savings. But saving money's not always easy. In fact, among recently surveyed millennial home buyers, 41 percent said saving for a down payment was the biggest barrier to buying a home – only mortgage rates and home prices ranked higher. The good news, though, is you don't have to have a 20 percent down payment saved before you can buy a house. And, according to the survey, most younger buyers won't. The survey found 62 percent of respondents said they plan to have a smaller down payment when they buy. That's a big change from last year, when just 34 percent of millennial buyers planned to put down less than 20 percent.

According to the National Association of Realtors Home Buyers and Sellers Generational Trends study millennials made up the largest share of home buyers at 43%; boomers made up largest share of home sellers at 42%; Gen Z made up 2% of each. It is now more likely for an older millennial to be first-time seller than a first-time buyer.