How Millennials are Changing the Housing Market
Millennials are changing the game when it comes to the housing market. Tech savvy and mobile, millennials know exactly what they are looking for.
"Millennials are the largest generation of people in the U.S. and represent 60 percent of first-time homebuyers,” said Jonathan Smoke, chief economist for realtor.com. “They are also more likely than any other group to purchase a home in the next year."
Tightened inventory, difficulty receiving credit and lower than average salaries have kept many of these buyers out of the market, but most economists see that as a temporary setback.
"It's not that young people don’t want to purchase homes, it’s that they are delaying the purchase," said Lisa A. Sturtevant, vice president of research for the National Housing Conference. "Many of the reasons millennials are not forming households or making purchases are economic, so as the economy improves, we should see this group become more of a force in the housing market."
Smoke said it’s a misperception that millennials are not already participating in the market. “They represented 37 percent of home shoppers this summer, and over the next 5 years this generation will make up two-thirds of household formations," he said. "Between June and September 2014, over half of adults aged 21-34 visited real estate websites or mobile apps. And this is the cusp—get ready for the millennial wave to drive the housing market for decades."
Are you paying attention to the Millenial market? Check out the infographic below for more.