Millennials and Homeownership

Millennials are famously known for many things, especially their debt. This debt, combined with the rising cost of living, has put millennials in a difficult position. In many instances, they are choosing to rent over ownership because they cannot save money fast enough to cover all of their expenses. Even though homeownership is considered one of the greatest investments someone can make in their lifetime, it has not always seemed like a viable option for many young buyers. As a result, millennials appeared to be changing course on the American Dream.

However, millennial homeownership has been on the rise over the past year. Millennials are the largest generation in American history, even larger than the Baby Boomers. As they grow older, they are securing better jobs and increasing their earning potential. This collective purchasing power is substantial, and their footprint in the housing market cannot be ignored. It is time to pay closer attention to millennials and homeownership.

By the end of 2018, roughly one in three millennials owned a home. Millennials are not rejecting homeownership altogether—it is simply taking them longer to get there than previous generations. Circumstances vary. For some, high levels of student loan debt make homeownership unaffordable. Others stay in school longer or delay marriage and children, making homeownership and settling down less of a priority. Even so, attitudes toward owning a home remain positive, and many analysts predict a wave of new millennial buyers in the coming years.

As first-time homebuyers, millennials are changing how homeownership statistics are analyzed. The real estate industry can no longer rely on the status quo. While millennials may approach buying a home differently—through unconventional research methods and decision-making influences—they are not abandoning the goal of ownership. As homeownership becomes more attainable for this generation, it will be essential for real estate professionals to adapt. Connect with an MGR agent today to learn more about how we support millennials interested in homeownership.