Millennials just saved the hou sing market! Millennials helped power the market rebound The long-time perennial home renters, who were regarded as reluctant or unable to buy houses, are now resurfacing as the driving force behind the recent U.S housing market recovery. Housing demand from millennials, who are today aged between the mid-20s and late-30s, has had significance to the housing market witnessed since the middle of the last decade. However, more recently, this new category of homebuyers has had more influence in the housing market than older generations.
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ccording to Realtor.com, the group first accounted for more than half of all new home loans at the beginning of last year, which they also retained in the first months of this year. Millennials made up 38% of homebuyers in the year that ended July 2019. This number was up from 32% in 2015, according to the National Association of Realtors. Elsewhere, according to data from Pew Research Center, millennials surpassed baby boomers as the largest living adult generation in the U.S last year. According
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to per, the largest cohort of millennial births occurred in 1990, meaning that they turn 30 sometime in 2020.
“We anticipate as they turn 31 and 32, we’ll just see home buying demand grow,� said Odeta Kushi, deputy chief economist at First American Financial Corp. Kushi also added that millennials are likely to be responsible for at least 15 million home sales in the next decade. The current millennial homeownership trend challenges the years of projection by experts The Power Is Now Magazine | OCTOBER 2020
