February 11, 2021
The youth of America is prepared to take over the housing market this year.
It is 2021, mortgage rates are down, saving accounts are up and young people are ready to move closer to acquiring their dream homes. To put it in perspective, this year the age range of Millennials will 25-40 years old, while the oldest of Generation Z will be turning 24. These are typical age ranges for first time and long term homeowners.
For Millennials, the trend will be trade-up buying. Older Millennials have now owned their first properties long enough to see a considerable equity gain. With low mortgage rates available, their home shopping criteria is making room for bigger and better. According to a survey conducted by realtor.com, three quarters of respondents stated that they will be looking for bigger homes in nicer neighborhoods. Only one quarter of the respondents said that they will be lowering their mortgage budget.
On the opposite end of Millennials, Gen Z homebuyers will continue to dip their toes into the housing market before they are ready to really jump in. Although most Gen Z’s are first-time homebuyers, bigger homes in nicer neighborhoods are still a must have for the majority of them. Overall, despite wage cuts and stay at home orders due to the pandemic, home sales are still likely to progress.
Trevon Martin // CIRB Journalism Intern