Dayton Daily News (Ohio)
By: Nancy Farkas
November 3, 2013
Despite an uncertain future, the millennial generation - those 32 years old and younger
- has more optimism and confidence about purchasing a home than any other age group.
According to a recent National Association of Realtors study that evaluated the generational differences of recent home buyers and sellers, 85 percent of buyers under age 32 believe that a home purchase is a good financial investment. That is a definitely a strong endorsement from this youngest generation of home owners. The oldest of the millennial generation are starting to buy their first homes. They understand that homeownership is one way to accumulate wealth, especially for younger families in today's world. Currently, they might be facing an uncertain job market, mounting debt, and tighter mortgage lending rules, yet homeownership still matters to them, and they still aspire to one day become homeowners.
The study found that 79 percent of milliennials were first-time home buyers and 65 percent of them previously rented a home. Half of respondents said the reason for buying a home was their desire to own a home of their own. Twenty-two percent said the affordability of homes made them want to purchase.
The millennial generation is also the second largest group of recent buyers, accounting for 28 percent of recent purchases. They follow Gen X, those born between 1965 and 1979, which made up 31 percent of recent home purchases.
The millennial generation is the largest in history after the Baby Boomers - those born between 1944 and 1964 - and they are expected to give the housing market a boost. However, there are some significant challenges that might hinder their ability to purchase homes.
Buyers with student loan debt may find it difficult to access mortgage credit, as well as save for a down payment.
The impact of student loan debt is a concern for future generations and their ability to become home owners, since those burdened with growing monthly debt payments will have restricted access to mortgage credit and could find it harder to save for a down payment.
Today's young home buyers are facing challenges, yet those hurdles aren't changing younger buyers' attitudes about homeownership.
There is still tremendous affordability in the market and interest rates are still low. Today's market presents opportunities for young buyers to own a home and they recognize that.
Realtors are committed to making sure that those who are willing and able to own a home will have the opportunity to do so. Everyone should have the ability to pursue the dream of homeownership.