Millennials poised to take over home buying, NAHB says
The number of millennials purchasing new homes continues to surge, according to the National Association of Home Builders (NAHB).
Citing data from the Census Bureau, the homeownership rate of millennials is now at 36% and registered the largest increase among all age groups in 2017. Now the nation’s largest demographic group, the NAHB said more than 70 million millennials are ready to dominate the home buying market in the months and years to come.
“Millennials are recognizing the benefits of homeownership and are eager to buy their first homes,” said Randy Noel, NAHB chairman and a custom home builder from LaPlace, La. “And contrary to conventional wisdom, this generation is in the market for single-family homes in the suburbs as they look ahead to raising their families.”
While rising construction costs and limited lot availability is hampering the building of smaller, single-family detached homes that are affordable to first-time buyers, this might not hold millennials back.
According to the NAHB, millennials are willing to compromise on space and townhouses offer an affordable option for younger buyers. Although townhouse construction suffered a drop-off during the Great Recession, the share of new townhome construction has been rising since 2009. NAHB analysis of Census data says townhome construction increased 7% in 2017.
NAHB analysis of the Census Bureau’s Housing Vacancy Survey also shows that the number of home owner households increased by 1.5 million in 2017, while the number of renter households declined by 76,000.
Citing data from the Census Bureau, the homeownership rate of millennials is now at 36% and registered the largest increase among all age groups in 2017. Now the nation’s largest demographic group, the NAHB said more than 70 million millennials are ready to dominate the home buying market in the months and years to come.
“Millennials are recognizing the benefits of homeownership and are eager to buy their first homes,” said Randy Noel, NAHB chairman and a custom home builder from LaPlace, La. “And contrary to conventional wisdom, this generation is in the market for single-family homes in the suburbs as they look ahead to raising their families.”
While rising construction costs and limited lot availability is hampering the building of smaller, single-family detached homes that are affordable to first-time buyers, this might not hold millennials back.
According to the NAHB, millennials are willing to compromise on space and townhouses offer an affordable option for younger buyers. Although townhouse construction suffered a drop-off during the Great Recession, the share of new townhome construction has been rising since 2009. NAHB analysis of Census data says townhome construction increased 7% in 2017.
NAHB analysis of the Census Bureau’s Housing Vacancy Survey also shows that the number of home owner households increased by 1.5 million in 2017, while the number of renter households declined by 76,000.