Economist: Millennials will soon start buying homes
WINTER PARK, Fla. – March 30, 2016 – Gregg Logan, a managing director at real estate advisers RCL, says the narrative about millennials and homeownership is a media myth. Young adults bought as many homes as boomers did last year, notes Logan, who is also a professor of real estate economics at Rollins College.
Millennials make up a third of homebuyers. The percentage of first-time purchasers is down from when millennials' parents bought their first place in 1981 – from 40 percent to roughly 33 percent now – but Logan thinks that statistic will change.
Young people are delaying noteworthy life decisions that usually precede homeownership, such as getting married or having children because of student debt and the Great Recession. However, most surveys indicate that if the financial situation changes, so will preferences.
For example, the Federal Reserve Bank of New York Survey of Consumer Expectations found that 44 percent of renters believe they will buy when they move within the next three years.
"An improving economy, greater access to credit, and the sheer size of this generation of young consumers" means the turnaround is just a matter of time, says Logan.
Source: Orlando Weekly News (03/30/16) McKay, Rebecca