From what I’ve been experiencing in the market, more Millennials, Gen-Z and younger buyers are getting in line to purchase their first homes. Currently at 38%, Millennials (adults born from 1981 to 1996) represent the largest share of home buyers in the U.S.. However, at 48%, Millennials have the lowest homeownership rates of any other generation. (For comparison, Gen-X’s homeownership rate is 69%, while 78% of Baby Boomers and 79% of the Silent Generation own their home).
Why does this matter? Well, homeownership in the US has been on a decline, especially in younger generations, up until now. From what I see currently in Atlanta, new buyers are taking advantage of first time buyer loan programs along with low interest rates, allowing sellers to use their equity to buy up – which in turn carries up across all price points. This is only one of several reasons why the market is extremely hot.
As always, I’d love to hear your thoughts.
Next week I’ll discuss the history of homeownership. Victoria Lemos talks about this in her awesome podcast, Archive Atlanta. Check the 20 minute episode out here.
