Millennials and the Housing Hunt
As we are all aware, the housing market is currently taking a hit due to the increase in mortgage rates in the latter half of 2018. However, on a positive note, millennials (age 22-37) are finally making a foothold in homeownership! In the past (and still current environment), millennials have had a lower ownership rate than past generations due to three main factors:
- Millennials are getting married later in life.
- They are living in expensive cities more often than not.
- Their education debt is making it hard for them to save enough money for a down payment on a home.
The homeownership rate in the second quarter of 2018 was 36.5%, the highest the rate has been since 2013 for individuals under the age of 35 year olds.
However, do not assume they are buying the first house they can afford. In a recent poll by the National Association of Home Builders (NAHB), 54% of all active homebuyers are taking three months to find the right home. The length of the search is taking longer due to lack of affordability, lack of desired features in the home, and finding a home in the right neighborhood. Even after three months to no avail in the home search, 61% of active homebuyers will continue to look for a home in their preferred location, 37% will expand the search area, and 23% are willing to accept a smaller or older home.
We here are Great American understand the struggles homebuilders are going through these days and are happy to help in any way we can before, during and after the homebuilding process.