MORE YOUNG PEOPLE ARE BUYING HOMES “...it’s clear that younger households (millennials!) are driving homeownership growth.” There’s a common misconception that younger generations aren’t interested in homeownership. Many people point to the fact that millennials put off purchasing their first home as a reason for this belief. Odeta Kushi, Deputy Chief Economist for First American, explains why millennials have put off certain milestones linked to homeownership. Those delays led to their homeownership rates trailing slightly behind older generations: “Historically, millennials have delayed the critical lifestyle choices often linked to buying a first home, including getting married and having children, in order to further their education. This is clear in cross-
generational comparisons of homeownership rates which show millennials lagging their generational predecessors.” So, it’s partially true that some millennials have waited on homeownership to focus on other things in their lives – and that’s impacting certain housing market trends. Data from the National Association of Realtors (NAR) indicates the average age of a first-time homebuyer is higher today than it’s been over the past 40 years. As Exhibit A on the right page shows, homebuyers today are purchasing their first home an average of four years later than people in the 1980s and early 1990s. Just because millennials are hitting certain milestones later in life doesn’t mean they’re not interested
4 | GRHG | VOLUME TWO | ISSUE FOUR | 2021
