Everyone is interested in what millennials are doing these days: where they’re living, what they’re watching, eating, doing, and buying. (Millennials are categorized as those born after 1980, typically between 18-34 years of age.) Last year, we shared some surprising reports about millennials and the housing market. While you might not think younger people would be driving the market, reports indicated that in 2017, it was millennials who were buying the most homes. According to the National Association of Realtors, millennials have been the largest group of homebuyers for four consecutive years. And even if they haven’t bought a home yet, most millennials want to. According to research done by Fannie Mae last year, 91% of renters between the ages of 25 and 34 eventually want to own a home. So what about 2018?
Millennial Demand Expected to Continue to Increase
According to a recent article on Forbes.com, homeownership among millennials is expected to continue to grow: “The generation of adults born after 1980 were slow to enter the housing market, but as a growing share of them get married and have kids they are buying homes at rates equal to their parents. In fact, single millennials are more likely to own a home than prior generations of singles.”
Why Millennials Are Buying Homes Today
What’s behind this trend of millennials buying more homes? Here are some key factors:
- Financial benefits: Savvy millennials recognize that owning a home is still one of the best ways to build equity and net worth – and still an excellent investment opportunity. According to the founder of a home equity finance company in San Francisco, as reported in S. News & World Report, “If you are looking at housing as a long-term investment for capital appreciation, look to generate 13 to 15 percent returns annually.” Plus, it just makes good financial sense to put your monthly home payment into something that’s yours, rather than paying that money as a renter to someone else.
- Need for more space: Sometimes, you just need that extra closet… or bedroom… or maybe a basement, especially when you’re thinking about starting a family.
- Desire to have more control over living space: Pets, renovations, painting… when you own your home, there’s so much more freedom to do what you want to do!
- More privacy/Better security: In your own home, you control who has access to your home at all times – and what type of security is in place.
Good News for Millennials Looking to Buy
Interest rates are still relatively low right now and continuing to hold steady, hovering around 4%. With these low rates, it’s a great time to buy a home. And Forbes also predicts that lending standards will be relaxed in the near future, after several years of tightened criteria. This could mean more prospective borrowers may be approved for loans.
It’s encouraging to see a younger generation still recognizing the value of homeownership. If you’re a millennial, or whatever generation you’re in, we have the perfect home for you at Elite Homes, with nine communities throughout East Louisville. We have a variety of home choices for all types of buyers! Learn more on our website – or visit the community of your choice to see one of our neighborhoods and take a tour of our gorgeous models. We would love to show you around and show you how easy it is to buy your new home with us!