Buying a house is one of life’s biggest accomplishments. It means that you’re a responsible, economically stable adult. It means that you’re ready to settle down and have responsibilities. With all this said, who would think that millennials would be the biggest homebuyers of 2022?
Historically, the “peak” age to buy a home is 30 years old and about 4.8 million millennials will turn 30 in 2022. According to realtor.com Housing 2022 Forecast, about half of mortgages will be made by millennials by the summer.
The rise in homeownership for millennials comes at a good time. The interest rates are low on homes and there has been a decline on home prices in major cities. Not only that, but millennials are putting large down payments on homes as well.
Older millennials who are settling down are looking to buy entry-level homes and not so much in big cities. The forecast predicts that millennials are now looking into buying homes in the suburbs where there are good schools for their children.
However, there is a shortage of entry-level homes for these new homebuyers. Despite the 50 percent of mortgages being paid by millennials, only 21 percent of the homes on the market are starting homes, which means that not every millennial is buying an 1,800-square-foot home. Some are making bigger monetary sacrifices.
In addition to spending more money, about 65 percent of millennials also worry that buying a home will also shorten retirement savings.
To contrast, other older generations, like Gen X, are actually upgrading to bigger homes which will give some room for those entry-level homes to get on the market while Boomers will hold on to their homes.
It is safe to say that 2022 will continue to be changed by millennials in all aspects of living.
Report from realtor.com: Housing 2022 ForecastComparte