Millennials Are Still a Driving Force of Today’s Buyer Demand
If you’re thinking about selling your house, know that there are still people searching for a home to buy today. And your house may be exactly what they’re looking for. While the millennial generation has been dubbed the renter generation, that namesake may not be appropriate anymore. Millennials are still a driving force for buyer demand in the housing market today. Here’s why.
Millennial Homebuying Power
There’s no denying higher mortgage rates are making it more challenging to afford a home today. Still, many millennials are still eager and able to buy homes. That’s in large part because of the value they place on education.
A recent article from First American says millennials may be the most educated generation in our nation’s history. Because of that, they tend to earn higher wages. That translates to greater homebuying power. Odeta Kushi, Deputy Chief Economist at First American, explains:
“In 2020, millennials with a bachelor’s degree had a median household income of over $100,000, while those with at least a graduate degree had a median household income of over $120,000. Compare those income levels with the median household income of millennials with just a high school degree (or some college) of $60,000 and the earning power benefits of higher education are undeniable. . . . Millennials’ pursuit of higher education is good news for the housing market. . . because education is the key to unlock both greater earning power and, in turn, homeownership.”
Wages are one of the key factors for affordability when it comes to buying a home. These higher earnings can help millennials achieve their homeownership goals.
Millennials Continue To Be a Driving Force of Demand
A number of studies have looked into how the millennial generation views homeownership. These studies also look at how they’re uniquely positioned to define the housing market moving forward. As the largest generation, the volume of potential millennial homebuyers will have an impact on the market for years to come. As an article in Forbes explains:
“At about 80 million strong, millennials currently make up the largest share of homebuyers (43%) in the U.S., according to a recent National Association of Realtors (NAR) report. Simply due to their numbers and eagerness to become homeowners, this cohort is quite literally shaping the next frontier of the homebuying process. Once known as the ‘rent generation,’ millennials have proven to be savvy buyers who are quite nimble in their quest to own real estate. In fact, I don’t think it’s a stretch to say they are the key to the overall health and stability of the current housing industry.”
Are you worried that buyer demand has disappeared in the face of higher mortgage rates? Know that isn’t the case for everyone. While demand has eased this year, millennials are still looking for homes. As Mark Fleming, Chief Economist at First American, says in an article:
“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”
Millennials are till a driving force of today’s buyer demand. They are well-positioned to achieve their homeownership dreams. If you’re ready to sell your house, know that it may be just what they’re looking for. Let’s connect today to discuss more!