Talk about lack of timing and not a lot of luck. Millennials have faced hard situations as they’ve headed into their peak home buying years.
- Millennial parents pulled back their tuition support for their children’s higher education due to their losing their jobs during the Great Recession.
- As a consequence, Millennials graduated college into the Great Recession with record-high student loan debt.
- Millennials have experienced skyrocketing property prices.
- They have experienced tightening inventories that translated into even higher home prices.
- Homeownership lost some of its luster when Millennials watched their parents lose their homes to foreclosure during the Great Recession.
- The homeownership rate among 35-44 year olds dropped to 60% in Q3 2019 from 67% 10 years earlier.
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All of these situations and experiences have been documented by a recent report from Zillow. This same report, created by survey results from economists and real estate experts, indicates that Gen-Zers will have a much easier time of it when they reach their peak home buying years by 2035. Why?
- The economists and real estate experts surveyed by Zillow expect that Gen-Zer homeownership rates to be higher than Millennial homeownership rates.
- These economists and industry experts expect home supplies to be less constrained down the road.
- They expect burdens of student loan debt to be eased.
- These experts believe that Gen-Zers will have a higher preference for owning rather than renting.
- Experts believe Gen-Zers will be more open to moving to secondary and tertiary markets where homes are cheaper than Millennials.
According to this Zillow report, “In 2020, the oldest Millennials will begin turning 40, capping a turbulent decade that presented any number of home buying difficulties for them at the same time as they aged into their prime home buying years…By 2025, when the youngest Gen-Zer buyers are reaching 40, experts said they largely expect conditions to be more favorable and for the homeownership rate among 35-44 year olds to be higher than it is today.”
Thanks to HousingWire’s Kathleen Howley for source data.
Also read: What’s Hot and What’s Not in September’s Housing Trends, Renovate-to-Rent Fueling Foreclosure Auctions & Rental Rates Exploding, Will A Next Recession Destroy Millennials?
