Despite the common opinion that millennials do not want to purchase homes, studies have shown that millennials’ desire to own is just as favorable as previous generations. In the U.S., millennials total 24 million independent households and are expected to form 20 million new households by 2025. The median home buying age in 2015 was 31, so millennials will be the next home buying group in the coming years.
According to a report released by Fannie Mae, young renters are interested in owning a home for several reasons:
- Control over their own living space
- Privacy and security
- The ability to live in a nicer home
- The ability to feel engaged in the community
- Having flexibility in future decisions
The report also mentioned that the majority of millennials surveyed said they consider owning a home more of a sensible decision than renting. Many young renters in the survey appeared to be moving toward purchasing a home, with almost 50% saying it would be their next move.
While it may not be the current state of the real estate market, millennials are likely to be the next large home buying generation. If you are a millennial looking to purchase a home, there are many programs available to help with down payments. I would love to help you review your finances and discuss your home buying options. Call me today to set up an appointment!