First Time Buyers – Millennials Could Fuel Starter Home Market
First Time Buyers – Millenials All those Millennials who moved in with their parents after college may finally be ready to move out and buy their own homes, say researchers at Harvard’s Joint Center for Housing Studies.
Over the next decade, the number of households headed by people in their 30s should increase by 2.7 million. This will provide a strong lift to the starter home market.
“Ultimately, the large millennial generation will make their presence felt in the owner-occupied market,” said Daniel McCue, research manager of the Joint Center, “just as they already have in the rental market, where demand is strong, rents are rising, construction is robust, and property values increased by double digits for the fourth consecutive year in 2013.”
A BMO Harris Bank survey confirmed what Harvard predicts. It found 32% of 18- to 34-year-olds plan to become homeowners over the next year. A whopping 74% of millennials said they expected to be homeowners within five years. First Time Buyers – Millenials.