Time marches on and the Millennials are finally entering the home buying market in larger numbers. Always the subjects of think pieces and articles about living in basements and renting for longer than previous generations, older Millennials are finally starting to fulfill their home buying dreams.
The Recession & Recovery
According to Business Insider, “Older millennials, defined by CGK as those over 30, took the greatest hit from the recession, making it harder for them to accumulate wealth.” This, along with rising home prices and low wage growth, created a generation of renters.
But wage growth is rising and low interest rates are enticing more and more Millennials and the older members of Gen Z into the housing market. According to CoreLogic Deputy Chief Economist Ralph McLaughlin, “American households, especially young households, are becoming confident enough in their financial and familial circumstances to take the plunge into homeownership, despite rocky outcrops of affordability and sparse inventory.”
And this is great news for Millennials who want to increase their personal net worth. The Survey of Consumer Finances from the Federal Reserve revealed that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).
These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.
Using a Realtor
Even in urban areas, a knowledgeable realtor can find the best deals for a first time home buyer. And 9 out of 10 members of Gen Z, the “digital native” generation and the youngest group to wade into the housing market, plan on using an agent to buy a home, according to a Homes.com survey released June 25th.
If you have decided that you are ready to buy a home, but don’t know where to start, reach out to Geva and Jane for a free home buying consult!