The Kiplinger Letter, December 4, 2015
Don’t believe the claim that millennials are passing on homeownership. They just haven’t hit their home buying years yet.
A great many millennials are only between 22 and 26 years old today. The average age of first-time buyers is 31. That means the bulk of the generation have up to a decade ahead of them before they join the housing market. In the meantime, they’ll often rent instead. But surveys show they still want to own a home and see it as a good investment.
Look for the ranks of young buyers to start swelling in five to seven years. The most numerous single age cohort today is 24-year-olds, with 23-year-olds and 25-year-olds close behind. As they near 30, that huge group of millennials will be looking to move out of their cramped apartments or their parents’ homes…a promising wave of future demand for home builders and real estate agents.
Of course, would-be buyers still face plenty of hurdles, especially high debt from college. Saving for a down payment while paying down loans is a slow process.