Love it or hate it, the term Millennial is used to describe one of the millions of diverse Americans born between 1982 and 2000. According to the United States Census Bureau, millennials now number in the 83 millions, making them 1/4 of our population and larger than the Baby Boomer generation of only 75 million. Whether you’re one yourself or a realtor working with this group, understanding Millennial Homeownership is key in this day and age.
In this report, A Millennial’s Guide to Homeownership, common myths and stereotypes about millennials are broken down with important findings and research. This guide will help first-time millennial homebuyers, as well as realtors, navigate the new territory of millennial homeownership. Key findings include:
- Millennials Are Buying – There is a common misconception that millennials aren’t buying homes, but in fact, “buyers aged 18-34 years have comprised the largest share of first-time homebuyers at roughly 50-60 percent for the last few years. In 2016, buyers aged 25-34 years accounted for 56 percent of first-time home buyers, compared to 50 percent in 2005.” This group of people are an important piece of the market and are only becoming more important as millennials age and begin to grow up, so to speak.
- Millennials Don’t Buy Because They Don’t Want Families – There are many myths about why the millennials group has delayed home ownership. Theories include they don’t really want families, they have too much student loans, millennials themselves think they need a huge down payment and a perfect credit score. In a recent study of young renters Fannie Mae found millennials cited these six reasons as to why young homebuyers have delayed purchasing their home. Some of the reasons are the fault of misinformation and the mortgage industry as a whole misunderstanding this group of people. By understanding homeownership works, the mortgage loan process, and millennials beliefs about the matter, both sides can win.
- Homeownership is Important – Regardless of the buyer’s age group or so-called label, homeownership still has many important financial benefits including wealth accrual, it’s often cheaper in the long-run than renting, and it’s a good savings account for the future.
- Get Prepared – Both millennials and realtors working with this group of people have some work to do to understand each other and the process. Use this guide to learn more about millennials and how to go about applying and qualifying for a home loan.
This guide is beneficial for young homebuyers to understand the ins and outs of millennial homeowernship, as well as realtors beginning to work with millennials. Download, read, and share the full Millennial’s Guide to Homeownership article by clicking here.
Contact the Eusea Team for additional resources about millennial homeownership and to begin applying for a mortgage loan. We’re happy to work with homebuyers of any generation and we’re confident we can help you apply and qualify for a mortgage loan in Northern Colorado that meets your unique needs.