We’ve written here more than once about the trend of Millennials delaying their entry into the homeownership market, and how that’s helping drive the very healthy apartment market. What we haven’t talked about is that those Millennials would eventually develop a lifestyle that would make owning that house with a yard and a little elbow room more appealing, and while they might do it at an older age than their parents did, they would eventually do it.
Well, the time for Millennials to start owning their nest appears to have arrived. From an article at NBCnews.com:
Millennials were the largest group of home buyers (34 percent) for the fourth consecutive year, according to NAR’s 2017 Home Buyer and Seller Generational Trends study. By comparison, baby boomers were 30 percent of buyers.
“That myth that millennials don’t want to own things is not true,” said Jeremy Wacksman, chief marketing officer at the Zillow Group. “Millennials are not just starting to buy homes; they’re powering the housing market.”…
“Millennials have been fairly slow to get into the market, but we are seeing an uptick in millennial buyers this year — which is a good sign, because as home values rise, we want a wider number of people to participate in this housing recovery,” said Lawrence Yun, chief economist at the National Association of Realtors (NAR). “There’s a pent-up demand and as the economy continues to improve, we expect to see more people in their early thirties, adults who are still living with their parents — clearly not their idea of the American dream — begin to look for their own housing units.”…
Research done by the National Association of Homebuilders found that more than 90 percent of millennials say they eventually want to buy a house.
“Home ownership is very much at the center of what they want to do in their lives,” said Rose Quint, NAHB’s assistant vice president for survey research. “They see the challenges, but home ownership is still front and center one of their major goals.”
Luckily for apartment developers and managers, Boomers seem to be reentering the rental market just as the Millennials are starting to exit it. So this country’s (now) second-largest generation continues to have a profound impact on the housing economy.