Despite paying for avocado toast, Millennials are actually buying homes and at an increasing rate. According to the Census Bureau, homeownership rose in the second quarter of 2017, with households under the age of 35 rising a full percentage point from the previous quarter. This may not sound like much, but this is the highest increase of any age group.
Millennials have been dubbed the “renters generation” due to the fact they are putting off settling down until later in life. Homeownership likelihood increases by three percent for those with a bachelor’s degree and another three percent for those with a graduate degree. With millennials being the most educated generation in the US, it is no surprise homeownership is up amongst them.
Marriage is another key determinate in homeownership. The rate of homeownership amongst married couples is 30 percent higher than non-married households. Millennials have put off marriage for higher education. It also has been found that homeownership is 1.7 percent higher for households with one or two children and 5.4 percent higher for households with three or more children. As millennials grow older, there may be an increase in homeownership demand.
Job growth and strengthening economy has also helped all generation (including Millennials) with homeownership. The bottom line is that millennials are buying homes at an increasing rate and that is only going to increase further.