Younger homebuyers who are entering the housing market are favoring more affordable, older, and less spacious homes, according to a report by the National Association of Home Builders' Eye on Housing blog.

Natalia Siniavskaia, writing for Eye on Housing, says three out of four Millennial homebuyers were purchasing their first home, with the remainder trading in an existing home. The data was collected from the 2013 American Housing Survey conducted by the United States Census Bureau.

Siniavskaia says the NAHB summary defines Millennials as people who were 33 years old or younger in 2013 and purchased a home within the two years leading up to the survey interviews.

Millennials favored single-family detached properties, with more than two-thirds purchasing such a home. They were also more likely to purchase a multifamily condominium unit than older buyers, however. Almost 9 percent of Millennials bought such a home, compared to 6 percent of older buyers.

Millennials were also less likely to buy a new home, with fewer than 9 percent doing so. Almost 12 percent of older buyers bought a new home.

Half of all homes purchased by Millennials had an average size of less than 1,650 square feet. More than one out of every four Millennial buyers bought a home that was less than 1,200 square feet. Twenty-six percent of younger buyers bought such a property, compared to 21 percent of older buyers.

There was less of a gap for homes between 1,200 and 1,599 square feet, with 19 percent of Millennials and 17 percent of older buyers favoring this option. There was more disparity among buyers of homes between 1,600 and 1,999 square feet, with 23 percent of Millennials and 16 percent of older buyers getting a home in this range.

Older buyers made up the majority of larger home purchases. Eighteen percent bought a home between 2,000 and 2,499 square feet, compared to 15 percent of Millennials. Ten percent of older buyers bought homes between 2,500 and 2,999 square feet, while 11 percent of purchases of homes between 3,000 and 3,999 square feet. These accounted for 8 percent and 5 percent of Millennial purchases, respectively.

The largest homes held the smallest proportions of both groups. Only 2 percent of Millennial buyers purchased a home of 4,000 to 4,999 square feet, while a mere 1 percent bought a home of 5,000 square feet or more. Four percent of older homebuyers bought a home in the 4,000 to 4,999 square foot range, while 3 percent bought a home of 5,000 square feet or more.

Younger buyers were also more likely to buy less expensive homes, with half of all homes purchased by this age group costing less than $148,500. However, Millennials and older home buyers bought the most inexpensive homes in about equal proportions. Homes under $100,000 made up 27.2 percent of Millennial purchases and 26.4 percent of older buyer purchases.

There was a greater disparity in the next price ranges. Homes selling for $100,000 to $149,000 made up 23.4 percent of Millennial purchases and only 15.3 percent of older buyer purchases. Residences in the $150,000 to $249,000 price range made up the greatest proportion of Millennial purchases at 28.8 percent, while this range accounted for 22.4 percent of older buyer purchases.

Older homebuyers made up the majority of home purchases for $250,000 or more. A total of 14.9 percent of older buyers and 12.4 percent of Millennial buyers purchased a home in the $250,000 to $349,000 range, while 11.2 percent of older buyers and 5.6 percent of Millennials bought a home in the $350,000 to $499,000 range.

Millennials were unlikely to purchase a home for half a million dollars or more. Residences in the $500,000 to $749,000 range made up 2.4 percent of their purchases, while homes of $750,000 or more made up only 0.3 percent. A total of 5.5 percent of older buyers bought a home in the $500,000 to $749,000 range, while 4.3 percent bought a home selling for $750,000 or more.

Most Millennials said they wanted to move to establish their own household, with 33.3 percent giving this reason as compared to 12.6 percent. Older buyers moved for a variety of reasons, with a slight majority of 13.6 percent saying they needed a larger unit.

Both Millennials and older buyers gave similar reasons for choosing a neighborhood. The house itself was the main motivator, selected by 81 percent of Millennial buyers and 76 percent of older buyers. Millennials were more likely to be influenced by a home's proximity to work, with 53 percent choosing this characteristic as compared to only 40 percent of older buyers.

Millennials were more likely to choose a home for its price, while older buyers favored a home because of its size. Seventy-five percent of Millennials and 64 percent of older buyers said they chose a home for financial reasons, while 72 percent of older buyers and 68 percent of older buyers said they liked the size.

Older buyers were less likely to get a mortgage, with only 68.8 percent taking this option. Eighty-two percent of Millennial buyers took out a mortgage. Making a down payment with savings or cash was the most popular option in both groups, with 61 percent of Millennials and 51 percent of older buyers using this method.

Millennials were more likely to take advantage of zero-down mortgage options, while older buyers were more likely to use money from the sale of a prior home for a down payment. A total of 12 percent of Millennials and 8.5 percent of older buyers used the former option, while 7 percent of Millennials and 24.4 percent of older buyers used the latter.

Buying a home might prove more difficult for Millennials in certain markets, according to a recent analysis by Jed Kolko, chief economist at the real estate site Trulia. Kolko says that while 93 percent of Millennial renters indicated an interest in buying a home in a previous study, many live in markets where homes are less affordable.

Kolko says 20- to 34-year-olds account for at least 23.5 percent of the population in cities such as Austin, Texas; Honolulu, Hawaii; New York City; and San Diego, California. However, he says fewer than 30 percent of the homes for sale in these cities are within the affordability range of Millennial buyers.

Kolko describes the situation as a "Millennial mismatch." He says younger buyers in less affordable markets will likely have to decide between continuing to rent or moving to an area where it is more affordable to buy a home.