Millennials and Homeownership

see more on this incredible study at: www.urban.org
Their study shows that the homeownership rate for millennials is about eight percentage points lower than that of the two previous generations (Gen X and Baby boomers) at the same age (25 – 34). 
Some of the (now) quantifiable factors in these major differences include:

• Delayed marriage: Being married increases the probability of owning a home by 18 percentage points, after accounting for other factors such as age, income, race/ethnicity and education.
• Greater racial diversity: the increasing diversity of millennials contributes to the lower homeownership rate
• Increased education debt: A 1 percent increase in education loan debt decreases the likelihood of owning a home by 0.15 percentage points.
• Increased rents: A 1 percent increase in a household’s rent-to-income ratio decreases the likelihood of homeownership by 0.07 percentage points.
• Delayed child bearing: For those who are married, having a child increases the probability of owning a home 6.2 percentage points, after accounting for other factors

One other interesting factor the study notes is that many millennials are choosing to live in more expensive urban centers where owning a home is expensive, sometimes too expensive. **We can see this whole scenario at play in our large D-FW area. It is harder to find ample living space in urban centers like Dallas and Fort Worth … but, it’s also still possible to own a home in Allen, TX and commute to work in the metroplex. 
*We would love to answer any questions our Millennial friends might have about owning a home.

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