Millennials Are Still a Driving Force of Today’s Buyer Demand
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If you're thinking about selling your home but aren't sure if there are still buyers out there, know that there are people looking for a home to buy right now. And your home could be just what they're looking for.
While the millennial generation has been dubbed the renter generation, that moniker may no longer be applicable. Millennials, the largest generation, are currently a significant driving force in the housing market. This is why.
Millennial Homebuying Power
While higher mortgage rates make it more difficult to buy a home today, many millennials are still eager and able to do so, whether it's their first home or they're moving up. This is due in large part to the importance 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, and 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.”
And, because wages are a key factor in determining 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
Several studies have been conducted to investigate how the millennial generation views homeownership and how they are uniquely positioned to define the housing market in the future. As the largest generation, the number of potential millennial homebuyers will have a long-term impact on the market. According to a Forbes article:
“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.”
If you're considering selling your home but are hesitant because you're concerned that buyer demand has dwindled due to higher mortgage rates, know that this isn't the case for everyone. Millennials are still looking for homes, even though demand has decreased this year. According to Mark Fleming, Chief Economist at First American, 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 interested in and 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. Connect with us today!