Millennials could soon flood the homebuying market
Posted on Tuesday, December 2, 2014 at 9:20:46 AM
Over the past few years, housing market experts have pointed out how the lack of younger, first-time homebuyers - including the millennial generation - has been a negative sign for this segment.
According to Zillow research, that could be changing in 2015. One of the key predictions for the coming year is the resurgence of the millennial homebuyer, with this demographic passing Generation X as the biggest group of buyers in the market. In addition, homebuyers are expected to have more negotiating power next year.
"Roughly 42 percent of millennials say they want to buy a home in the next one to five years, compared to just 31 percent of Generation X, and by the end of 2015 millennials will become the largest home-buying age group," explained Stan Humphries, chief economist at Zillow. "The lack of homebuying activity from millennials thus far is decidedly not because this generation isn't interested in homeownership, but instead because younger Americans have been delaying getting married and having children, two key drivers in the decision to buy that first home."
Furthermore, a previous report from the National Association of Realtors found that only 33 percent of all recent homebuyers were first-timers, down from the normal level of 40 percent.
Ideally, lower residential financing rates, a stronger economy and other positive factors will help more millennials dive into the housing market.