The dream of homeownership is alive and well for the Millennial generation.
The numbers are in: Millennials – those age 33 and younger – take the top spot as the largest group of recent homebuyers in the U.S. According to the 2014 National Association of Realtors Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent homebuyers and sellers, millennials comprised 31 percent of recent home purchases.
“Millennials are the largest generation in history after the baby boomers, and since many still aspire to one day invest in their future through homeownership, they drive future housing demand,” explains Orlando Regional Realtor Association Chairman Zola Szerencses.
Despite having a reputation of not wanting to put down roots, this generation still very much sees homeownership as part of the American Dream. And while millennials want to enter the market, this generation does face some challenges on their path to homeownership.
Twenty percent of millennials polled said that they would have a hard time saving for a down payment, citing student loan debt as their main financial hurdle. That can limit the options and ability for young people to own, not to mention the challenges of tight credit, limited inventory, rising prices and the possibility of rising interest rates. A Realtor can be a millennial’s best source for guidance in overcoming these challenges.
But despite the obstacles, young buyers’ attitudes about owning a home are not diminished. This generation truly appreciates the long-term benefits and economic security of homeownership – 87 percent polled say they consider their home purchase a good financial investment. They also understand the issues currently affecting the market, and that they may have to be flexible to make owning their own home a reality.
“Realtors know that younger people often need to make compromises to get into their new home and can help guide buyers to achieving their goal of owning their own property,” says Szerencses. “Desired size and location are usually negotiable when buying a home and most buyers are willing to make financial sacrifices if it means they can make this important investment in their future.”