Millennial Homeownership

Millennials, known for their ability to craft creative social content in a matter of minutes and their uncanny knack for online self-expression, are now — having thoroughly exhausted the thrill of the unknown — gravitating towards stability in the form of homeownership.

According to Realtor.com, in November 2018, Millennials surpassed Generation X as the largest generation responsible for the most new mortgages. Since then, the Millennial mortgage rate has continued to increase in numbers, making up 45% of all new mortgages in contrast to 36% Generation X and 17% Baby Boomers.

In general, Millennials have the earning power to simply skip Generation X “starter homes” and build the home of their dreams. With the 25 to 34 year old age group earning medium of $63,000 a year, Millennials are able to build or purchase without having to compromise.

When it comes to life milestones, Millennials aren’t necessarily waiting to meet the right person, get married, purchase a home, and have children (in that order). On the contrary, many Millennials have skipped milestone #2 and traded marriage in for mortgage payments. According to a Marriage and Homebuying Study conducted by Coldwell Banker, a quarter of American Millennials purchased their first home with their significant other before getting hitched — a stark comparison between more traditional generations.

Indeed, rather than paying rent on temporary living conditions, Millennials are drawn to building equity in a place they can call home.

Are you ready to make your dream home a reality? Contact us for more information about our Communities and Home Plans!

NOTE: Realtor.com’s report is based on an analysis of a sample of residential mortgage originations from Optimal Blue.