More Young People Are Buying Homes

There’s a common misconception that younger generations aren’t interested in homeownership. Many people point to the fact that millennials put off purchasing their first home as a reason for this belief. Odeta Kushi, Deputy Chief Economist for _First American_, [explains](https://blog.firstam.com/economics/pandemic-accelerated-roaring-20s-of-millennial-homeownership-demand) why millennials have put off certain milestones linked to homeownership. Those delays led to their homeownership rates trailing slightly behind older generations: > _“**Historically, millennials have delayed the critical lifestyle choices often** **linked to buying a first home,** including getting married and having children, in order to further their education**. This is clear in cross-generational comparisons of homeownership rates which show millennials lagging their generational predecessors.”**_ So, it’s partially true that **some millennials _have waited_ on** [**homeownership**](https://www.simplifyingthemarket.com/2021/07/07/the-truths-young-homebuyers-need-to-hear/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) **to focus on other things in their lives** – and that’s impacting certain housing market trends. Data from the [_National Association of Realtors_](https://www.nar.realtor/newsroom/pandemic-caused-buyers-to-seek-multi-generational-homes-sellers-to-sell-faster) (NAR) indicates **the average age of a first-time homebuyer is higher today than it’s been over the past 40 years**. As the graph below shows, homebuyers today are purchasing their first home **an average of** **4 years later** than people in the 1980s and early 1990s:[](https://i0.wp.com/cherylbowerrealestate.com/wp-content/uploads/2021/08/20210819-MEM-Eng-1.png?ssl=1)But just because millennials are hitting certain milestones later in life **doesn’t mean they’re not interested in becoming homeowners**. The recent [U.S. Census](https://www.census.gov/housing/hvs/files/currenthvspress.pdf) reveals a significant **increase in** [**homeownership rates**](https://www.simplifyingthemarket.com/2021/02/11/47-of-new-buyers-surprised-by-how-affordable-homes-are-today/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) **for millennials and other young homebuyers**.[](https://i0.wp.com/cherylbowerrealestate.com/wp-content/uploads/2021/08/20210819-MEM-Eng-2.png?ssl=1)As the graph above shows, millennials are entering the market in full force, and their share of the market is growing. Based on the data, **the belief that younger generations don’t want to buy homes is a misconception.** In fact, the recent [_Capital Market Outlook_](https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/CMO_4-26-21_Merrill.pdf) report from _Merrill-Lynch_ further drives home this point, as it specifically mentions the effect millennials are having on demand: > _“Demand is very strong because the **biggest demographic cohort in history is moving through the household-formation and peak home-buying stages of its life cycle**.”_ Kushi is following the trend of millennial homeownership and puts it more simply, [saying](https://twitter.com/odetakushi/status/1420030874872074252): > _“. . . **it’s clear that younger households (millennials!) are driving homeownership growth**.”_ As the largest generation, millennials’ impact on the market is growing as more and more people from that generation reach homebuying age – and Generation Z isn’t far behind, either. That means younger generations will likely continue to [drive demand](https://www.simplifyingthemarket.com/2021/07/15/diving-deep-into-todays-biggest-buyer-concerns/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) in the housing market for years to come. ### **Bottom Line** If you’re a member of a younger generation and interested in purchasing a home, you’re not [alone](https://www.simplifyingthemarket.com/2021/06/25/homebuyers-hang-in-there-infographic/?a=550432-7d0dd2250a392515b4ab3273bfa644ce). Many of your peers are on their path to homeownership, too. Let’s connect today and discuss what you can do to accomplish your [homebuying goals](https://www.simplifyingthemarket.com/2021/08/02/key-questions-to-ask-yourself-before-buying-a-home/?a=550432-7d0dd2250a392515b4ab3273bfa644ce).