There’s been a perception, since the financial crisis and housing crash, that younger Americans had turned off to homeownership and were not buying houses at the same rate as previous generations. And, in fact, the share of first-time home buyers has been lower than historically normal for the past several years. Of course, there are many reasons this could be true – including student loan challenges, inventory shortages, rising home prices, etc. However, a new analysis from Fannie Mae, says that, despite conventional wisdom, there has been an acceleration in millennial home buying habits and, if true, it could provide a boost to the housing market in the years to come. That’s because, if millennials aren’t buying houses, there’s no reason to believe homeownership demand will rebound. According to Fannie Mae, “If young-adult homeownership rates have yet to rebound after nearly a decade of economic growth, why should we expect a turnaround in the future?” On the other hand, if Fannie Mae’s analysis is correct and the number of millennial home buyers has been increasing throughout the economic recovery, then there is reason to believe that homeownership rates among young Americans will begin to reflect this improvement as well. More here.
