Skip to content

Millennial Home Buying set to Increase

January 12, 2015

As we enter 2015 news headlines are shifting from portraying Millennials as eternal renters to proclaiming 2015 as the year of the Millennial home buyer.  Millennial first-time homebuying has certainly been delayed by the effects of the Great Recession but as America’s largest generation enters the age and lifestage associated with homebuying, Millennial buyers will increase.

The chart below outlines where Millennials sit along the housing preference timeline, just now settling into the ‘Young Family Own’ sequence, with the eldest Millennial now 34 years old.

RCLCO_LifestageInfluencesRealEstate(Source: RCLCO)

In addition, studying population projections published by the CDC we can illustrate the structural population demand for for-sale housing by Millennials.  The median age of the first time home buyer is 31 years old, according to the National Association of Realtors, therefore mapping the projected population of 31 year-olds should be a strong indicator of future for-sale housing demand.  When plotted we can see we are on the cusp of a steady six year growth trend through 2022, in which we can expect this population boom to boost the housing sector.

31YearOldsbyYear

(Source: CDC)

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: