Once saddled with the reputation for being a “generation of renters,” millennials are increasingly gravitating toward home ownership.
A recent survey by Realtor.com fund that 65 percent of people between the ages of 25 and 34 who were visiting the website this summer were hoping to buy a house n the next three months. And that statistic was reinforced by a finding in august by the National Association of Realtor: that first-time home buyers – typically young adults – purchased 32 percent of existing homes that month, up form 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 Smith, chief economist at Realtor.com.
Top Triggers for Millennials to Become Home Buyers
- Increase in income
- Tired of current home
- Favorable home prices
- Favorable interest rates
- Increasing rents
Considering that millennials – broadly defined as ages 2 to 35 – represent 31 percent of adult residents in Sand Diego and 25 percent in Imperial Beach, that trend is likely to make an impact on Southern California’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, including finding space for children. Additionally, as some millennials begin to earn more income and shed debt from student loans, more are financially fit to invest in real estate.