Dylan was so right: the times, they are a-changin'. And the residential real estate market is being swept right along.
While
in Dylan's day it was about the group known as baby boomers, it's now
about the millennials-more than 75 million of them. According to the
most recent census, millennials now represent more than 25 percent of
the population and 32 percent of potential home buyers.
That
means that many of you reading this are or soon will be looking for
somewhere to live. Your impact is inescapable, and here's the upshot to
date:
Studies in recent years, including one by the Pew
Institute in 2013, show that a sizable proportion of 18-to-34-year-olds
are still living at home. Another trend is adult children and their
parents looking for accommodations together for cost-saving reasons, a
recent National Association of Realtors® survey found.
But not
everyone is concerned for millennials: Jonathon Smoke, chief economist
of Realtor.com, is bullish on them. He reports that in summer 2015,
millennials made up 30 percent of buyers, many of whom cited family
changes (marriage, kids) as their reasons for purchasing.
And
while credit and student debt remain concerns for potential millennial
home buyers, give them time. Says Smoke: "They should represent
two-thirds of all household formations over the next five years. Job
creation will favor them. Their economic opportunities are strong. And
they're planning to start families, which increases the desire to
purchase a home. They're just getting started, and their sheer size will
drive activity in housing for decades."
Questions? Find us at www.FirstAmericanMortgage.net
Thank you!
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