Millennial marriages may drive up demand
A new survey shows that when renters buy a home, it will likely be a lifestyle change that motivates them – either getting married, starting a family or retiring. And according to one economist, as Millennial marriages and pregnancies rise in 2018, it should equal a rise in housing demand as well.
More marriage, more housing
According to the Housing Opportunities and Market Experience survey from the National Association of Realtors, 32 percent of non-homeowners said a lifestyle change would be their motivation for buying a home down the line.
Thanks to Millennials – and this very sentiment, NAR's Chief Economist Lawrence Yun said housing demand may spike in 2018.
“Housing demand in 2018 will be fueled by more Millennials finally deciding to marry and have kids and the expectations that solid job growth and the strengthening economy will push incomes higher,” Yun said.
The continuing dearth of housing inventory could pose a problem, though.
“With prices and mortgage rates also expected to increase, affordability pressures will persist,” Yun said. “That is why it is critical for much of the country to start seeing a significant hike in new and existing housing supply. Otherwise, many would-be first-time buyers will be forced to continue renting and not reach their dream of being a homeowner.”
According to the survey, just over half of non-owners said they couldn’t buy a home because of finances.
Could relief be on the horizon?
Fortunately, there are signs inventory levels might be improving. In January, RE/MAX CEO Adam Contos predicted a good year for homebuilding and existing home sales. Wallick & Volk can help you with the financing of a new home. Visit our website at www.wvmb.com to find a mortgage professional in your area.