More millennials are buying homes. But that’s not all. According to a new survey, the majority of millennials also believe that homeownership is part of the American Dream.
A report from Trulia said that 73% of millennials – the generation of young people who are now between the ages of 18-34 – said they believe that the American Dream includes homeownership.
Millennials in the survey reported that saving enough money for a home down payment was their biggest obstacle to homeownership, followed by high home prices and the inability to qualify for a mortgage.
A recent interview of several real estate and economics experts by Wharton Business Radio revealed that there are a number of reasons to be optimistic about the future of millennial homeownership though.
4 Reasons More Millennials Are Buying Homes or Will in the Future
Here are four reasons identified in the radio program for the expectation of increased home buying by millennials now and into the future:
1-Strong Economic Conditions – The economy is stable and strong right now. Unemployment is low and wages are up. Mortgage interest rates are also still fairly low.
2-Marriage Rates – The marriage rate of millennials is up slightly and the experts said that marriage is the number one predictor of home buying.
3-Rising Rents – Rent rates are up across the country, although they’re more affordable in some areas than others. And the more rent payments go up, the more buying homes makes more sense to millennials.
4-Non-Traditional Underwriting – The experts believe that underwriters will increasingly develop innovative ways to determine credit worthiness for home buying besides looking at FICO scores. This is relevant to millennials because many do not like to take out credit, making it harder for them to show credit history. They are also more likely to work in non-traditional types of jobs than those in other generations.
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