It is always assumed that millennials are deviating from their parents when it comes to housing. They are more poised to rent a house or even crash with their parents as they look for a job or try to pay student loan debt. Recently, this trend seems to be shifting.More millennials are moving from their parents basements and settling in their own houses. Unfortunately, Affordability constraints and price appreciations mean majority will have to rent. However, a new millennial generation has emerged that are willing to move into affordable suburbs.
Today more American millennials are likely to purchase a house. First-time home owners are responsible for the rise in sales recently witnessed. Recent real estate surveys reveal that close to 65% of site visitors’ age between 25 and 34 and are eager to buy a house within three months. The bump in millennial numbers is also witnessed real estate websites.
Marriage & Increasing Rental Charges
Life stages such as marriage and conception greatly drive millennials thirst for home ownership. The same can be attributed to falling housing costs and rising rental charges. Statistics indicate a drop in the number of millennials seeking rental homes. Industry analysts say that children are the primary driver of home ownership which is at an unprecedented low number right now.
This is arguably the biggest baggage millennials carry around after college that makes them shy off from home acquisition. Student debt estimates nationwide total $369 billion, more than double the figure during the previous decade. In addition to the debt issue are unemployment or under-employment which prevent young people from making sound property purchases.
More people renting homes are considering purchasing a home, indicating a shift in the economic outlook. Millennials seem willing to brave through stringent down payment requirements and tight-credit so as to avoid soaring rental prices and rising Federal Reserve interest rates. 85$% of millennial buyers view their home purchase as a sound financial investment. More of the general public feels that they are less likely to lose their jobs. Household incomes seems to be on the rise as well as property values.
Young buyers are making an unprecedented resurgence in the housing market after being bogged down by tight credit and student loans. This is further promoted by a resurgent economy, rising rent prices and the appeal of opting for higher mortgage rates. When it comes to millennials home ownership two factors remain the most dominant; a good job and affordability.