Today’s homebuyers want smaller houses, closer in

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The notion that Millennials don’t want to live in the suburbs is proving to be a myth. "The suburban dream is alive and well," says Jeremy Wacksman, chief marketing officer for Zillow. "Millennials don’t just want to live downtown. They are looking for their first house and want good schools and want to move to the suburbs."

Home buyers used to covet a three-quarter acre lot. Today’s buyers – both the Gen X and Gen Y generations as well as empty-nest retirees-see that same lot and think "maintenance." Instead, they’re opting for city living, in big cities like New York as well as smaller urban centers such as Baltimore , Pittsburgh , and San Jose .

Six in 10 first time home buyers said they bought or intend to buy a fully detached home and three-quarters want a new home. Meanwhile, survey respondents were equally split between preferring a.

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Homebuyers. expectations if they want to reach a younger generation with different lifestyle preferences, he said. “The big question is at what prices are they going to be able to sell those homes,

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"For many of today’s potential new-home buyers," he says, "experiences and location trump square footage." And they are not alone: Boomers are vying for the same houses. Builders and developers aren’t currently building the homes that first-time buyers and retirees want, or where they want them, he said.