NAHB: 'Boomerang' millennials good for housing market
Posted on Thursday, February 12, 2015 at 8:10:13 AM
Boomerang millennials - or members of Gen. Y that move out of their parents homes, then back in - may actually be a positive sign for the U.S. housing market.
According to Bureau of Labor Statistics data, roughly 90 percent of adults born between 1980 and 1984 have moved out, while about 50 percent have later returned home. A surplus of boomerang millennials waiting for a home could drastically affect the housing market, should they decide to buy again.
Due to this, the National Association of Home Builders believes that this demographic is a positive for the housing market. There is a backed-up demand for homes from millennials, and the market would receive a substantial boost when they decide to buy.
"Understanding the makeup of those who return home could shed light on the timing of the release of what we know is quite a bit of pent-up demand," explained NAHB chief economist David Crowe. "The data may indicate that while this age group is delaying what we think of as typical milestones, the combination of resources and education and what we have found about their preferences suggest growing housing demand in the years ahead."
Ideally, residential financing rates and home prices will remain favorable enough to encourage boomerang buyers to test the market once more.