You may think young people are not buying homes — and you’re partially correct. Some younger generations, particularly millennials, have indeed taken longer to buy their first homes than older age groups. Odeta Kushi, deputy chief economist for First American, explains, “Historically, millennials have delayed the critical lifestyle choices often linked to buying a first home, including getting married and having children, in order to further their education. This is clear in cross-generational comparisons of homeownership rates, which show millennials lagging their generational predecessors.” Indeed, a study by the National Association of REALTORS® found that homebuyers today are purchasing their first house an average of four years later than those who bought back in the ‘80s and early ‘90s.
However, this doesn’t mean that millennials are not interested in owning homes. The most recent census from Q2 2021 shows a dramatic increase in homeownership rates for millennials and other young buyers — and their share of the market is growing.
We can then conclude that based on the current data, the belief that younger generations don’t want to buy homes is actually a misconception. As the largest generation, millennials’ impact on the housing industry is becoming stronger and stronger as more individuals reach homebuying age. Gen Z isn’t far behind.
What does this mean for the real estate market? Most likely, younger generations will continue to drive demand for years to come. If you are a millennial, Gen Z-er, or simply someone looking to buy or sell, call Gary to help you navigate the complexities of today’s market. Lets get started today....lets chat
Source: Keeping Current Matters