Millennial Buying Power Poised To Boost Homeownership

Dated: September 17 2019

Views: 40

#TuesdayTipMillennial Buying Power Poised to Boost Homeownership | MyKCM

In a recent article by Realtor Magazine, Mark Fleming, Chief Economist of First American Financial Corporation, notes,

“The largest group of millennials by birth year will turn 30 in 2020, which puts them entering their prime homebuying years”.

The article continues to describe how millennials have more buying-power than the generations that preceded them, making their interest in embracing homeownership stronger than ever,

“Millennials—the most educated generation—have the highest incomes across their generational cohorts, even when salaries are adjusted for inflation.”

This combination of power and desire has the potential to drive positive growth in the homeownership rate heading into the near future. According to Fleming,

‘“The gap between the potential and actual homeownership in 2018 narrowed slightly as the growth in homeownership modestly exceeded the increase in potential demand,” he says, citing First American’s Homeownership Progress Index.

“We expect the homeownership rate to further close the gap with potential in the years ahead as millennials continue to make important decisions, such as attaining an education and, later in life, getting married and having children.”’

That said, the shortage of sellable inventory in the entry and mid-range levels that’s attractive to potential millennial buyers may be a contributing factor as to why many millennials haven’t yet purchased a home. According to another recent report citing Frank Martell, President and CEO of CoreLogic,

“Lower rates are certainly making it more affordable to buy homes and millennial buyers are entering the market with increasing force. These positive demand drivers, which are occurring against a backdrop of persistent shortages in housing stock, are the major drivers for higher home prices, which will likely continue to rise for the foreseeable future.”

With millennials aging-up into mortgage-ready and home-buying territory, along with their strong buying interest and buying power, this generation is poised and ready to have positive impact on homeownership rates across the country. Many of them just need to find a home they’re excited to buy in this competitive end of the market.

Bottom Line

If you’re thinking of selling, let’s connect and determine if now is a great time for you to list your house and move-up. More millennials are getting ready to jump into the market and join the ranks of homeownership, so demand for homes in the starter and mid-level range will continue to be strong.


Tricia Glover, Realtor

The Glover Team, Inc.

540-846-0185

http://tglover.liveinfredericksburgva.com

Blog author image

Tricia Glover

As an agent who's an expert in this local area, I bring a wealth of knowledge and expertise about buying and selling real estate in the Northern Virginia Area. It's not the same everywhere, so you ne....

Latest Blog Posts

Good News

Some Highlights Whether you’re buying or selling – today’s housing market has plenty of good news to go around. Buyers can take advantage of today’s mortgage rates

Read More

Agent Is Key

Your Agent Is Key When Pricing Your House Some Highlights Pricing your house right takes market experience and expertise. To find the best list price, your agent balances current

Read More

Labor Day

Happy Labor Day!  Take this day to enjoy and do what makes you feel relaxed.  Looking to buy or sell?  Wondering about the real estate market?  Let's talk!Robin Cantrell,

Read More

Welcome September

Robin Cantrell, Realtor The Glover Team Inc.United Real Estate Premier, 540-845-7651 cell#540-374-1111 office#992 Bragg Rd., Suite A, Fredericksburg VA 22407Licensed in the Commonwealth of

Read More