Young Buyers Are Purchasing More Million-Dollar Homes Than Ever

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Millennials are now purchasing more million-dollar homes than ever, the Wall street Journal reports, and it’s largely due to the tech boom and the lucky strike of being born into a family with a ton of money to spare.

Real-estate agents are claiming to see a rise in this trend, where the younger crowd are skipping the starter homes and going all-out—one entrepreneur, 28-year-old Matt Winter, who runs an interior design firm, purchased his first million-dollar home just two years ago. Winter believes that investing in real estate is one of the safest ways to protect your money, and, according to real estate agents, many people purchase more than one home to utilize some property as an investment. One millennial couple briefly profiled in the featured purchased a home for $1.1 million and rented out their other home for $3,250 per month.

According to Census Bureau data, while homeownership rates have fallen sharply in the past year among the middle-age, the rate has actually grown among young people aged 25 to 34.

One factor that has greatly affected the rise in the purchasing of million-dollar-plus homes amongst Generation Y-ers is the IPOs of major companies like Facebook, LinkedIn and Google.

Ken DeLeon, a broker in the San Francisco Bay Area, said, “One of my Facebook clients recently moved from an 800-square-foot rental apartment to a 9,000-square-foot home, which they purchased for $7 million,” adding that he’d “seen a large shift in recent years among high-end home buyers, with 70% more people under 35 in the mix today than just two years ago.”

Aside from those profiting from the tech boom and starting their own companies, superrich parents are also making sure their children are set with real estate.

I’ve seen more parents buy homes for their children in the last year than in my whole career,” says Jade Mills, a luxury broker in Los Angeles. “It was very unusual 10 years ago. In the last year, I’ve sold six houses to clients whose parents paid for them.”