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Millennials

Are Millennials (18 – 34yr olds) slower to leave home than previous generations?

The oldest in the age group, generally considered those born between the early 1980s and the late 1990s, launched careers during the recession. Jobs were scarce, earnings were stagnant, and as a generation, they accumulated record amounts of student debt. Many simply couldn’t afford to leave home and that slowed household formation and demand for housing.

Here’s the good news: Recent economic reports show a steady shift toward more jobs and increased wage growth. Millennials may leave home soon after all.

What could that mean for the housing market? Well, as demand increases, supply could fall and prices could rise further.

And what could this mean for you?

Thinking of moving? Sellers may have a good opportunity to sell quickly and at a good price. Buyers may want to shop early before prices increase more.

Planning to stay put? Home values will likely increase as demand increases. If so, you may rest comfortably knowing the equity in your home is growing.

Personally I have seen the above graph hold true until the start of 2015.  Prior to the start of 2015 a majority of my loan applications have been for individuals over the age of 34.  However over the last 3 months, I have seen a steady increase in loan applications for Millennials.  This is a good sign that not only is the job market improving but that our youth is becoming one step closer to achieving the dream of homeownership!

If you have any questions about this topic please don’t hesitate to contact me. To learn more about our company and mortgage products, please feel free to call Dan Longman, President of Priority Lending Corp, at 954-438-3776 ext.11 or email me at prioritydan@bellsouth.net. Visit us online at www.prioritylendingcorp.com

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