Saturday, August 13, 2016
Millennials Finally Starting To Buy Homes
11:07 am cdt
From HousingWire.com - edited for content
As Millennials get older,
they are increasing homeownership rates faster than in previous years, according to research from Fannie Mae.
Fewer Millennials are buying homes than previous generations,
true. However as they get older, they are making up for lost time; The rate of increase for Millennials is significantly
higher than the rate of increase for previous generations.
as the housing market continues to recover, more Millennials are moving into homeownership. Some oft-cited reasons for the
possible delays are commonly believed to be onerous student debt levels and
a preference to renting.
A study conducted
by Genworth Mortgage Insurance at the 2016 Mortgage Bankers Association Secondary Conference in New York City showed that, while Millennials
delayed homeownership longer than other generations, the industry expects that they are about to move into the housing market.
In fact, some are starting to realize that Millennials are the key to future growth in the industry. Credit
unions are growing, and Millennials are both a key driver and a target market for sustained loan growth, according to
a study by TransUnion.
There are, however,
several problems holding Millennials back as they begin to enter the market. There’s an extreme shortage of inventory
in the housing market. Hopefully this, too will soon resolve itself.
The most recent homebuilder confidence report recorded that homebuilders exhibited some optimism for the coming months.