The Rate of Homeownership has increased from 34.3% to 35.3% from first Quarter 2017 to Second Quarter 2017 for those under 35 years of age, according to a report from the United States Census Bureau.
While popular media seems to portray Millennials as a generation of renters, a whitepaper from First American lists six reasons why the number of Millennials becoming homeowners will continue to rise. Here is a quick summary.
They Are The Most Educated Generation
First American says,
“Our model shows that, all other factors being equal, the likelihood of homeownership increases by 3 percent for those that earn a bachelor’s degree over those with a high school degree. The likelihood of homeownership jumps another 3 percent for those that earn a graduate degree.”
To summarize, more education results in a higher rate of homeownership. Since Millennials are the most educated generation in the United States, we should expect to see the rate of homeownership for this group increase over time.
Marriage And Homeownership – Happy Together
As a generation known for delaying life milestones, many are marrying later. With the homeownership rate being 30% higher for married couples over non-married homes (according to First American), we can expect to see the rate of homeownership increase over time for Millennials.
Parents Prefer To Own
According to First American‘s research:
“The homeownership rate is 1.7% higher for households with one or two children compared to households with no children, and it is 5.4 percent higher for households with three or more children.”
As Millennials mature, there may be an increase not only in marriage, but also in producing the next generation. According to First American‘s latest report, this could also result in a bump in homeownership for this up and coming group.
Economics And Income
First American‘s study ties recent gains in income growth and a stronger economy to an increased willingness and ability to buy a home. While this is referring to the entire labor pool, it includes Millennials.
This is hardly proof, but it is interesting to note that ages 25-34 is the largest age group represented in visitors to Benchmark.us so far in 2017, at 32% of all sessions being within this age range.