Strike up a conversation with someone about the recovering real estate market, and it won’t be too long before millennials are mentioned. Why aren’t they buying homes? Are they eating too much avocado toast? (No.)
Well, now you can tell them that millennials are participating in the market. In fact, millennials account for one third of real estate transactions in the U.S.
So, what do we know about this blossoming group of homebuyers?
They’re not that different.
The median homebuying age of 31 has been unchanged since 1970. Two-thirds of millennials have not yet reached this benchmark. And all age groups - not just millennials - have declining homeownership numbers.
They’ll play a key role in the future of real estate.
Millennials are projected to form 20 million new households by 2025.
The median income for a millennial over 25 is $38,220. The rate of millennials living with their parents increased 15% from 2006 to 2013. The most common reasons millennials provide for postponing homeownership are financial (via Nerd Wallet):
- Insufficient credit score or history
- Affording the down payment or closing costs
- Insufficient income for monthly payments
- Too much existing debt
Though pessimistic, millennials do want homes.
9 in 10 plan to own a home in their lifetime.
Homeownership may be more attainable than millennials realize.
If you’re a millennial thinking about homeownership, you may not be aware that (via Nerd Wallet):
- First-time homebuyers and those with lower credit can find lenders with downpayments as low as 0% to 6%.
- It’s a good time to borrow. Interest rates are at historic lows.
- Student loan debt - which has surged 56% in the past decade! - actually does not deter homeownership.
“Millennials - and first-time homebuyers in general - should never just assume they can’t afford a home. The first step to owning a home is knowing how you can finance it, so you should always research your options,” said Ling from Nerd Wallet.
Wondering if you can afford a home?
Your prospects may be better than you think! Get in touch and I’ll guide you on your journey.