While some analysts predict that the housing market collapse could create an entire generation of permanent renters, others believe eventual recovery in the job market will prompt some renters to buy homes.
The number of first-time buyers has slid 20 percent during the last three years, according to John Burns Real Estate Consulting, and home ownership will continue to decline among the 25-to-34 age segment for the coming three years. Yet Rutgers Business School professor Ben Sopranzetti says, “This is purely an economic phenomenon, not a behavioral one.”
Stagnant income growth, huge amounts of student loan debt, and an 8.2 percent unemployment rate for 25- to 34-year-olds have made Millennials less willing to sink their money into home ownership. However, analysts believe Millennials will want to settle down as they age and that credit requirements will be eased at some point.
“Once they’ve paid down their debt, I suspect people will be more financially capable,” says San Francisco real estate investor Jake Kraft.
For now, developers are breaking ground on multifamily developments, particularly in areas like Denver and San Jose where job opportunities abound; and short-term leases are gaining popularity among young professionals who want to be able to move quickly to take advantage of these opportunities.
The author of this article is: realtormag.realtor.org
See the original post at: http://realtormag.realtor.org/daily-news/2012/07/17/millennials-will-become-home-owners-later
At GayRealEstate.com, we keep you updated with all the gay realtor, lesbian realtor, gay realty, gay real estate and general real estate news affecting the LGBT community coast to coast, and in your neighborhood.
Click here for list of gay realtors, lesbian realtors and gay friendly realtors Nationwide.
If you have a real estate story that you’d like to share with us with the gay and lesbian real estate community, please contact us at: manager@gayrealestate.com
