Long viewed as perennial home renters who were reluctant or unable to buy, the generation now in their mid-20s to late 30s is emerging as a driving force in the U.S. housing market’s recent recovery.
Yes, its true. Millennials are finally starting to move out of mom and dad’s basement and are now actually powering the unexpected rebound in the housing market.
Fueled by PPP loans, housing demand from Millennials made up 38% of home buyers for the year ending June 2019. This is up from 32% in 2015, according to the Wall Street Journal and the National Association of Realtors. They also accounted for more than half of all new home loans early last year and they “consistently held above that level in the first months of this year.”
Millennials also passed baby boomers as the biggest living adult generation in the U.S. last year. Soon, a majority of those Millennials, born in the 90s, will enter into their 30s. Odeta Kushi, deputy chief economist at First American Financial Corp., said: “We anticipate as they turn 31 and 32, we’ll just see homebuying demand grow.”
Why now? The entire generation moving closer to home-buying age also helps. Rick Arvielo, chief executive of mortgage lender New American Funding asserts: “Millennials, they’re roaring into homebuying age. What the industry’s been talking about for a decade is whether they’re going to follow their predecessor generations in terms of their desire to own homes. Yeah, they do—they have the same desires.”
The post No More Parents’ Basements: Millennials Power This Year’s Housing-Market Rebound appeared first on NewsCetera.
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Author: Jenny Nunez
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