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How millennials influence the housing market

Joe JessieThe Mortgage Reports Contributor

Millennials impacting the housing market

According to one national housing trend report, first-time buyers make up 47 percent of all purchases. Half of those buyers are under 36 years old. It’s safe to say that (finally!)

millennials comprise a large segment of homebuyers.

Verify your new rate (Aug 20th, 2018)

Millennials only group “moving up” in homeownership

The Zillow report indicated that millennials were the only generation to see an increase in their homeownership from the previous quarter., reaching 35.3 percent.

The report also noted racial differences:  66 percent of millennial homeowners are white, compared to 77 percent of all owners.

 

Race Percentage of homeownership
White 66%
Hispanic/Latino 17%
African-American 10%
Asian or Pacific Islander 7%

Making homeownership a possibility

So how do you reach the group that’s been intimidated by the idea of real estate buying? Many believe that owning a home means roadblocks and difficulty.

It’s not that millennials have abandoned the idea, it just seems… hard.

What is the best way to educate Gen Y?

The first step is to have millennials see homeownership as a real possibility. They see it as a goal, but not obtainable.

It’s easy to share the advantages of property ownership, but think about who you’re reaching. Your friends, sons, daughters and peers.

This group is busy traveling, excelling in their careers and education. How can it appeal to them?

One main concern for millennials are their student loans. That debt, combined with a shaky job market, concerns many. Those in position to purchase are finding that low inventory is another hurdle.

However, these are not the only concerns for this generation that are possible deterrents.

Millennials: not your Dad’s housing market

Millennials remember what happened to the housing bubble in 2008. That made many (understandably) gun-shy about buying.

Another issue is the belief that only families with kids buy homes, not single people. (Although many are considering their pets when they buy, say recent surveys.)

Last, the uncertainty of their careers is a legitimate concern. Millennials switch jobs more than any other generation, so that stability is important.

That’s why renting is such a great option for many, because they haven’t nailed anything down. So, one point of educating this generation is also not trying to ram an inappropriate housing solution down their throats.

Work with those o are ready, and that’s a bigger percentage of this group every year.

What are today’s mortgage rates?

For Gen Y, mortgage rates today are very affordable and inviting. if you’re ready to buy a home, or even invest in rental property, now might offer the most affordable mortgage rates you’ll see in a generation.

Verify your new rate (Aug 20th, 2018)