In this new Forbes article, Millennial Money blog contributor Lucy Mueller examines Gen Y’s current impact on the U.S. housing market, and how that will become even greater in the next few years.
The dream of homeownership hasn’t been lost amid the pragmatism of Gen Y-ers. The desire to own a home of your own remains the No. 1 reason people buy homes across all generations, according to the NAR, far more so than financial incentives.
As the older tier of Gen Y rounds into their early 30s, millennial homeowners are turning out more than ever before.
For the second year in a row, millennials represent the biggest group of home buyers in America, 32% of the market, according to a March 2015 report from the National Association of Realtors.
This number is only going to go up in the coming years. According to the 2015 TD Bank Mortgage Service Index, 50% of millennials say they are either “extremely” or “very” likely to buy a house in the next year.
“Millennials will have a huge impact on the housing market for the next decade, just because of demographics alone,” said Nela Richardson, the chief economist for Redfin. “So whatever a few of them do, there’s enough of them that they’ll make a big impact.”
