As you all know, the millennial generation has a larger population than the baby boomer generation. There are now 72M, or over 72 million Millennials in the US alone. And of those Millennials who don't currently own a home, 98% plan to buy one when they're ready. For reference, according to statistics in 2022, 18.2 million millennials own their own.
To put it simply, 53.8 million millennials do not own a home, and 98% of them plan to buy a home, so 52.72 million potential buyers are preparing to enter the market.
So why would they want to buy a house?
As the graph shows, 45% of millennials who are willing to buy a home are 'to build their own property rather than to increase the property of the landlord'. In other words, 23.72 million of the current millennials are aware of the absurdity of rent and will buy a house.
38% of respondents said it was because of a turning point in their life. For example, if you are married or have a baby. It's a process we all go through in life.
30% because they want to live a more stable life.
If you look at other answers, most of them are related to rent or rising house prices.
What I want to emphasize in this article is not actually “millennials buy houses for this reason”. The thing to remember is that there are over 50 million Millennials looking to buy a home for very clear and universal reasons. On the other hand, the number of new homes built each year fluctuates from 1.5 million. This means that even if 1.5 million new homes are built each year, it would take 35 years to meet the potential demand of the Millennial generation.
As always emphasized, the real estate market eventually changes according to the ratio of supply and demand. There may be regional differences, however, high-traffic areas naturally tend to increase house prices faster than average.
If you have any questions about today's article, please feel free to contact us.
See you next time with a fun and helpful article.
