Millennials to spend more on housing

Millennials are most likely to splurge, with 40% going over budget and by $24,545 on average. Thirty-four percent of Gen Xers raced past their limits, by $13,996 on average. And 19% of Baby Boomers topped their spending parameters, by an average $8,024.

Millennials are most likely to go over budget and by a larger amount because they’re first-time home buyers and the least knowledgeable about setting a realistic price target and meeting it, Maloney says. Gen Xers had Boomers are progressively savvier.

Also, supply shortages and sharp price increases are most acute among the starter homes Millennials favor, Maloney says. And, he says, young adults may feel more urgency to buy a house because they’re living with parents or renting. Members of the other age groups, many of whom already own homes, can simply stay in them until they find something close to their price range.