Millennial Homeownership on the Rise or is this a false ray of hope

Editor: Vlad Rothstein | Tactical Investor

Millennial Homeownership on the Rise?

It’s a popular myth – the millennial generation is destined to be a generation of renters – avocado toast, anyone? With student loan debt burdens, the scars of the Great Recession, and limited housing supply, the myth is rooted in some real challenges for millennials. However, despite these challenges, millennials are not only interested in homeownership, but they are also the primary reason that the homeownership rate increased over the past year.

Millennial homeownership demand is rising nationally, but where are millennials buying? Using the top 50 largest cities from the 2017 U.S. Census Bureau Current Population Survey, we identified cities with the largest increases and decreases between 2016 and 2017 in the share of homeowners that are millennials.

Out of the 50 top markets, 33 of them experienced increases in the share of millennial homeowners, another indicator that exposes the myth of millennials being destined to rent.

These results are consistent with findings that millennials are buying in cities large and small. So, are millennials destined to be a generation of renters? Consider that myth busted. Quite the opposite, actually – and they’re just getting started. Read more

Millennial Homeownership on the Rise: Seems More Like A Myth

When we discuss the differences between generations, between millennials and Generation X and the baby boomers and iGen, it’s important to recognize that some traits or trends that may look like characteristics of a generation are really just characteristics of all people of a certain age.

For instance, we may look at millennials and consider them impulsive, and there are certain data that would back up that assertion. Does this refute our preconceived notions about millennials living at home and putting off major purchases like homes and major life events like marriage?

Not necessarily. It just means more millennials are now of an age where it makes sense to them to buy a house.
A byproduct of the rise in homeownership, the Journal notes, is a slump in the residential rental market. More millennials buying homes means fewer millennials renting them.

If you’re a landlord who got in on the gravy train while it was rolling, good for you. If not, you may have to wait a while until iGen starts hitting the market, and the cycle will begin anew. Read more

U.S. Census Bureau data show that homeownership rates are highest

For those householders ages 65 years and over (79.2 per cent) and lowest for the under-35 age group (36 per cent). But that 36 per cent is significant because it’s an increase from 34.7 per cent a year earlier. As the Wall Street Journal observed, that “was by far the largest increase of any age group” over the prior year.

The state of housing is, to a great extent, is determined by millennials — after moving out of their parents’ basements and forming households, the next step tends to be having kids. Read more