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Will they or won’t they start buying homes at the rate of past generations? This is one of the most pressing questions about the Millennial generation, comprised by Americans born from the early 1980s to the late 1990s.
Home buying activity from this young generation could animate the economy and set off a chain reaction enabling Generation Xers (born early 1960s to early 1980s) to buy Baby Boomers’ homes, allowing them to retire.
Recent research suggests that when the conditions allow, millennials do become homeowners. MarketWatch.com reports that Elk Grove, California—which enjoys a strong employment market—is the number one city in the country for homeownership by people under the age of 35 (60 percent). The national average homeownership rate for this age group is 35 percent, according to Census Bureau data.
Millennials recognize the value of owning a home and, according to Zillow, half of first-time buyers are under 36 years old. The age-old problems remain, however. Low affordability, student loan debt and a struggling job market are colossal obstacles to overcome.
Do Millennials Desire to Own Homes?
In addition to their high student loan debt, the Millennial generation is unique in that they shy away from the expected norms of previous generations.
Recent Census Bureau data reveals that millennials are delaying independent living, marriage and parenthood much later than older generations did. At varying degrees, these three milestones all contribute to homeownership and the desire to own a home.
Do home buying statistics demonstrate that with a healthy job market and increased affordability, millennials will buy homes at similar rates as their older counterparts, or have the needs of today’s young generations shifted enough to alter homeownership as we know it?