2016 is on pace to have the strongest real estate market since 2008. According to a recent study by the University of Pennsylvania, Millennials will be the generation driving home buying trends well into the next decade.
There were 77 million Millennials born between 1980 – 1995. Traditionally, many of them are now at the stage to buy, however, the percentage of first-time home buyers has dropped to its lowest point in 30 years. Over the past year, only 32% of homes* were purchased by first-time buyers.
The news isn’t all bad, however. It is clear that Millennials want to buy, yet are simply waiting longer than their predecessors. The study sites increased debt from school loans, increased rental inventory, and a trend to delay marriage, among the cyclical factors younger buyers face before investing in real estate.
The study also forecasts once Millennials do bite the bullet, the trend will be to leave their urban confines for a more family-friendly, suburban lifestyle.
*National Association of Realtors (NAR) and Census Bureau