Millennials are famously known for many things, especially their debt. This debt and the rising cost of living has put millennials in a difficult situation. In many instances, they are choosing to rent over ownership because they simply 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 didn’t seem like a viable option for many young buyers. Millennials were changing course on the American Dream.
However, millennial homeownership is on the rise as of this past year. Millennials are the largest generation in American history, even more than the Baby Boomers. As they grow older, they’re getting better jobs and deeper pockets. Certainly, this collective purchasing power is massive. Their footprint in the market cannot be ignored. It’s time to pay closer attention to millennials and homeownership.
In fact, by the end of 2018, roughly one in three of millennials owned a home. We’re finding that millennials are not turning their noses up at homeownership, it is just taking them longer to get there than previous generations. The circumstances vary. For some, it is because of their high levels of debt from student loans make it unaffordable, while others are staying in school longer, delaying marriage and children, making homeownership and the idea of settling down unnecessary. Even so, their attitudes toward homeownership remain positive. Many analysts predict a wave of new millennial buyers in the next couple of years.
As first-time home buyers, millennials are changing the way we analyze homeownership statistics. We can no longer rely on the status quo, but can expect that millennials will not reject homeownership. Indeed, we can continue to expect their practice of home buying to be unconventional, including the way they consume information and what influences their decision making. Still, as homeownership for millennials becomes more within reach, it will be our job in the realty industry to keep up. Connect with an MGR agent today to learn more about how we are serving millennials interested in homeownership.