In a recent article on Realtor.com, author Jonathon Smoke argues that Millennials, people born between 1981 and 2000, are driving the current housing market. Millennials make up about 90 million people, the largest generation living at this time. Storm believes that Millennials are just beginning to purchase homes and the sheer number of them will drive the market.
1. Millennials are Starting Families. 86% of Millennial home shoppers say they are buying a home due to a change of family size and composition. They also say that a stable or improving income helped trigger the decision to buy a home.
2. Millennials Make Up 20 Million Households. 14% of home sellers this year were Millennials. This summer, 30% of home buyers were Millennials. This age group may quickly become the largest group of home buyers and sellers, just because there are so many.
3. The Cost of Education Will Pay Off. Smoke’s third argument is that Millennials are the most educated generation. It’s true that as a group, they carry a significant amount of student loan debt. As they pay off the student loans and get jobs with higher salaries and better advancement opportunities, purchasing a home will seem less like a financial burden and more like an investment.
Smoke says that Millennials will likely drive housing trends for the next 2o years.