As real estate experts we keep a close eye on the market, the trends, who’s coming in and who’s selling. Millennials, those born between 1980 and 1990, are a group that have not been participating heavily in real estate over the past few years.
The main reason they have not participated, they turned the typical home buying age during a major recession. The real estate community in general has been keeping a close eye on this group since they are the largest generation since the baby boomers and now have major buying power.
Economists are speculating that this large group needs to be given credit for the increase in the real estate market in 2015, and that they will continue to contribute over the next few years. These predictions are based on the following economic reasons:
Rising employment: Between 2007 and 2010, millennials had an unemployment rate of 14 percent, compared to the population as a whole that was at an unemployment rate of 9.6 percent. This was a result of the millennials entering the job market with little experience during a trying economy. However, now the millennial unemployment rate is 9.3 percent, and is expected to continue improving.
Low mortgage rates and greater credit availability: One of the largest obstacles millennials face when entering the real estate market is the inability to save for a downpayment. With mortgages at a historical low and a multitude of programs available to first-time homebuyers, the transition into homeownership is becoming easier for this group.
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