It appears Millennials are growing older and wiser, and the eldest in the generation are buying homes more and more, as the younger ones continue to push up demand for rentals.
On behalf of Ernst & Young, Research Now conducted a survey of 1,202 20- to 36-year-old U.S. citizens nationwide — that elusive home buying population called the Millennial generation.
Compared to their last survey in 2016, Millennials are warming up to buying homes.
“Homeownership for Millennials between the ages of 28 and 31 increased from 27% to 47% in two years (ownership of those aged 32-36 increased from 46% to 57%),” reports the survey. However, some things have not changed. The Millennials report student loan debt continues to delay homeownership and, are “deeply distrustful of traditional American institutions, preferring to rely on themselves and a good education.”
More and more Millennials are predicted to be requiring mortgages. Analysts at the Wells Fargo Securities are strategizing a surge in Millennial homeownership in the coming years, according to their 2019 projection report.
“We believe Millennials are the driving force in household formation, finally rotating toward homeownership and away from renting. In our view, the lack of supply to meet this demand will remain a key driver for the housing market in 2019 and should provide support for home prices,” the analysts, led by Vipul Jain, the Head of RMBS Research at Wells Fargo Securities.
“In absolute terms, millennial homeownership rate (36.8%) remains low relative to the next age group (59.5%),” they conclude. “However, this age bucket has increased the most since 2015 and surveys suggest they still view home buying as a long-term goal.”