Once saddled with the reputation for being a “generation of renters,” millennials are increasingly gravitating toward home ownership.
A recent survey by Realtor.com found that 65 percent of people between the ages of 25 and 34 who were visiting the website were hoping to buy a house in the next three months. And that statistic was reinforced by a finding this past August by the National Association of Realtors: that first-time homebuyers – typically young adults – purchased 32 percent of existing homes that month, up from 28 percent in July and the highest rate since 2012.
“People who believe that millennials are disinterested in home ownership are grossly mistaken,” said Jonathan Smoke, chief economist at Realtor.com.
Considering that millennials – broadly defined as ages 20 to 34 – represent about 27 percent of adult residents in Nashville and 17 percent in Williamson County, that trend is likely to make an impact on Middle Tennessee’s real estate market for years to come.
Among the factors motivating millennials to start buying include rising rents in many major U.S. markets, the prospect of higher interest rates in the near future, and the needs of family – finding space for children. Additionally, as some millennials begin to earn more income and shed debt from student loans, more are financially set to invest in real estate.
If you, or someone you know, are ready to buy your first home, call me to learn more about the home buying process.