Millennial Homeownership Rate Increases

Dated: 08/03/2017

Views: 64

Image title


Recent headlines exclaimed the homeownership rate, as reported by the Census Bureau, rose again in the second quarter of 2017. What didn’t get much attention in the reports is that the homeownership rate for American households under the age of 35 increased a full percentage point from last quarter’s 34.3% to 35.3%. Millennials proved to have the highest increase of any age group.

This came as a surprise to some considering Millennials have come to be known as the “renter” generation. However, a new study by First American, 6 Trends Poised to Reshape Homeownership Demand, revealed reasons why homeownership numbers will continue to increase for Millennials.

Millennials are the most educated generation in the U.S.

Why does that matter? First American explains:

“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.”

The more educated, the better the likelihood for homeownership. And, as we mentioned: Millennials are the most educated generation in the U.S.

Homes & marriage go together

Marriage is a key determinate in homeownership. According to an analysis by First American, the homeownership rate is 30% higher among married couples compared to non-married households.

Millennials have put off marriage in the pursuit of higher education. As this group ages, more and more will marry and purchase a home.

Parents buy houses

According to the study:

“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.”

The report goes on to say that as Millennials grow older there may be an increase in not just marriage but also in married couples with children. That will probably also create a “corresponding” increase in homeownership demand.

Wages and the economy

The study goes on to explain that recent gains in income growth and a strengthening economy will also help all generations (including Millennials) be more willing and able to purchase a new home.

Bottom Line

We guess the time has come to announce – Here come the Millennials!!

Blog author image

Julie Pruitt

I have that typical “I went on vacation and fell in love with the area and so we moved here” story. Hi, my name is Julie Pruitt and I am a proud Texas native. Prior to moving to Santa Rosa Beach, ....

Latest Blog Posts

Best Source For Hurricane Updates

Fact of life - it's not "if" but "when" storms will strike the coast.  When you are looking for information concerning the potential impacts of a pending storm, Facebook users can visit:Very

Read More

Are You Prepping Your Home For Resale

Even with it being a seller's market, it is still best to fix up your home before you put it on the market. One of the first places to start is in the heart of the home...the kitchen.If you

Read More

Freeport From A Busy Past At Turn Of Century To A Modern Day Hub

Lots of visitors through the years have passed through our tiny town of Freeport- not knowing that the town is really an incorporated city in Walton County and is rich with history.

Read More

Watercolor Craftsman Home

From the moment we entered 174 Needlerush Drive I was in awe of the reclaimed barn wood floors, the shiplap walls and ceilings, and the layout of this true craftsman home in Watercolor Florida. ;

Read More