Housing shortage hits hard as Millennials look to buy
You prepare yourself for it your entire life. You save the money, establish the credit until your score looks admirable and watch HGTV until you’re blue in the face. And then — wham! Now you’re ready to become a homeowner and can’t find anything to buy.
According to Realtor Magazine, a record number of millennials wanted to buy homes in 2020 but the inventory shortages have increased all price points of the housing market, further delaying their entrance into homeownership.
Rewind a bit in time and recall that before the pandemic, millennials said they were struggling to save for a down payment due to lost savings from the financial crisis or they were burdened with student debt. The delay of marriage and family have also been linked to homeownership, and hardly anyone was (is) getting married.
Now that the offspring of the baby boomers and genXers are feeling more financially stable, millennials’ potential homeownership demand has climbed by 3.5 percentage points year over year—more than any other generation, according to a First American Title analysis.
The peak year of millennials turning age 30 was 2020 and the oldest turn 40 this year. Millennials make up the largest potential home buying group, with the real estate industry anxiously awaiting its entry into the market. But with few or no homes to buy during these pandemic times, it’s a hurry-up-and-wait scenario. The housing market has been underbuilding for years and are about 6.5 million homes short of population needs since 2000, according to National Association of REALTORS® data.
Source: RealtorMag | TBWS
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