There are many stereotypes about millennials out there. People say they’re lazy, entitled, and they will never leave their parent’s houses. That is simply not true. Many millennials themselves actually fear that they will never be able to purchase a home.
Back in 2008, the housing market crashed, and everything was a mess. People lost their homes, and many potential homeowners changed their minds due to the risk of defaulting on their mortgage loans. Since then, the market has skyrocketed. Unemployment rates are at an all time low right now, sitting at 4.1%. Rental rates are going through the roof, and now no one wants to rent an apartment anymore. APRs are also getting better, so the interest rates on mortgage loans are much more appealing.
Studies show that the average amount it takes to sell a house in the U.S. is $15,200. Realtor.com has predicted that of the home buyers in 2017, 61% of them will be under the age of 35. They were not far off the mark. According to the Census Bureau date, in 2016, 34.7% of millennials were homeowners, and that number is only rising. This year, the number of millennials that own homes has risen to 36% so far. The Wall Street Journal notes that this is the highest increase out of any other age group.
How is this happening? The Bloomberg view tells us that more and more millennials are now in the workforce. The often work in urban areas like major cities that have an ever rising rent issue. They don’t want to be living in apartments and rental homes when the possibility of the rent rising to a point where they can’t afford it any more is frighteningly real.
They are deciding to buy houses. The interest rate of mortgages is at risk of increasing, so millennials are buying houses before that happens. They are also rapidly forming families, and many of them want a house, not an apartment, or raise their family in.
Many millennials have the fear that they will never be financially stable enough to purchase a home, and many of their older counterparts don’t believe that they will either. This is simply not the case. Millennials are the fastest growing participants in the housing market, and they don’t show signs of stopping any time soon.