Millennial Buying Power Poised to Boost Homeownership

Millennial Buying Power Poised to Boost Homeownership | Simplifying The Market

In a recent article by Realtor Magazine, Mark Fleming, Chief Economist of First American Financial Corporation, notes,

“The largest group of millennials by birth year will turn 30 in 2020, which puts them entering their prime homebuying years”.

The article continues to describe how millennials have more buying-power than the generations that preceded them, making their interest in embracing homeownership stronger than ever,

“Millennials—the most educated generation—have the highest incomes across their generational cohorts, even when salaries are adjusted for inflation.”

This combination of power and desire has the potential to drive positive growth in the homeownership rate heading into the near future. According to Fleming,

‘“The gap between the potential and actual homeownership in 2018 narrowed slightly as the growth in homeownership modestly exceeded the increase in potential demand,” he says, citing First American’s Homeownership Progress Index.

“We expect the homeownership rate to further close the gap with potential in the years ahead as millennials continue to make important decisions, such as attaining an education and, later in life, getting married and having children.”’

That said, the shortage of sellable inventory in the entry and mid-range levels that’s attractive to potential millennial buyers may be a contributing factor as to why many millennials haven’t yet purchased a home. According to another recent report citing Frank Martell, President and CEO of CoreLogic,

“Lower rates are certainly making it more affordable to buy homes and millennial buyers are entering the market with increasing force. These positive demand drivers, which are occurring against a backdrop of persistent shortages in housing stock, are the major drivers for higher home prices, which will likely continue to rise for the foreseeable future.”

With millennials aging-up into mortgage-ready and home-buying territory, along with their strong buying interest and buying power, this generation is poised and ready to have positive impact on homeownership rates across the country. Many of them just need to find a home they’re excited to buy in this competitive end of the market.

Bottom Line

If you’re thinking of selling, let’s connect and determine if now is a great time for you to list your house and move-up. More millennials are getting ready to jump into the market and join the ranks of homeownership, so demand for homes in the starter and mid-level range will continue to be strong.

4 Reasons to Sell This Fall [INFOGRAPHIC]
Some Highlights: Buyers are active in the market and often competing with one another for available listings. Housing inventory is
Read more.
One of the Top Reasons to Own a Home
One of the benefits of homeownership is that it is a “forced savings plan.” Here’s how it works: You make
Read more.
What Buyers Need to Know About HOAs
When searching for a home, you may end up selecting a property in a community with a Homeowners Association (HOA).
Read more.
Home Prices Increase in Every Price Range
Price appreciation can differ depending on your price range. CoreLogic analyzed four individual home prices tiers and shares the increase
Read more.
Things to Avoid After Applying for a Mortgage
Congratulations! You’ve found a home to buy and have applied for a mortgage! You’re undoubtedly excited about the opportunity to
Read more.
6 Graphs Showing the Strength of the Current Housing Market [INFOGRAPHIC]
Some Highlights: Keeping an eye on the current status of the housing market is one of the best ways to
Read more.
6 Graphs Showing the Strength of the Current Housing Market [INFOGRAPHIC]
Some Highlights: Keeping an eye on the current status of the housing market is one of the best ways to
Read more.
What Is the Probability That Home Values Sink?
With the current uncertainty about the economy triggered by a potential trade war, some people are waiting to purchase their
Read more.
What Is the Probability That Home Values Sink?
With the current uncertainty about the economy triggered by a potential trade war, some people are waiting to purchase their
Read more.
Millennial Buying Power Poised to Boost Homeownership
In a recent article by Realtor Magazine, Mark Fleming, Chief Economist of First American Financial Corporation, notes, “The largest group
Read more.