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Why the Millennial Delay

February 4, 2015

As Millennials seemingly avoid homeownership for renting a pattern can be seen in demographics suggesting it is more of a delay than a permanent shift to a renter society.  A delay caused by the emergence of Emerging Adulthood, a new life stage for those in their 20’s.  This new life stage is associated with increased education and delayed marriage.  Both of these demographic trends have correlations with homeownership.

EducationHomeownership

 

Homeownership and Higher Education – A Negative Correlation

As young people stay in school longer, they delay their entry into the job market and increase student debt effecting their ability to pay a mortgage.

MarriageHomeownership

 

Homeownership and Marriage – A Positive Correlation

Homeownership and marriage have a positive correlation, however as the median age at marriage extends it has reduced the overall marriage rate.  In 1970, the median age for marriage was 21 for women and 23 for men, however, by 2013 that has increased to 27 for women and 29 for men (US Census Bureau, 2014). This represents a significant change in less than two generations.

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