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Millennial Buying Power Poised To Boost Homeownership
Dated: September 29 2019
In a recent article by Realtor Magazine, Mark Fleming, Chief Economist of First American Financial Corporation, notes,
âThe largest group of millennials by birth year will turn 30 in 2020, which puts them entering their prime homebuying yearsâ.
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,
âMillennialsâthe most educated generationâhave the highest incomes across their generational cohorts, even when salaries are adjusted for inflation.â
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,
ââThe gap between the potential and actual homeownership in 2018 narrowed slightly as the growth in homeownership modestly exceeded the increase in potential demand,â he says, citing First Americanâs Homeownership Progress Index.
âWe 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.ââ
That said, the shortage of sellable inventory in the entry and mid-range levels thatâs attractive to potential millennial buyers may be a contributing factor as to why many millennials havenât yet purchased a home. According to another recent report citing Frank Martell, President, and CEO of CoreLogic,
âLower 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.â
With millennials aging-up into a mortgage-ready and home-buying territory, along with their strong buying interest and buying power, this generation is poised and ready to have a 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.
If youâre thinking of selling, letâs 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 the demand for homes in the starter and mid-level range will continue to be strong. For More insight Request your Free Sellers eguide : Things to Consider When Selling a Home
I am a Licensed Florida Real Estate Broker, RealtorÂŽ, and Owner of Charlotte County Properties Inc for over 16 years. In that time, I have received many review, awards and testimonials demonstrating....
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