Young Adults Finally Fleeing the Nest
Young Adults Finally Fleeing the Nest | Realtor Magazine
The millennial generation may finally be showing more signs of moving out of their parents’ homes and starting households of their own.
Read more: Parents Struggling to Kick Adult Kids Out
The number of home owners aged 25 to 34 has dropped by more than 250,000 in each year between 2007 and 2012. Since then, the number has dropped to less than 100,000, according to a new report released by mortgage-backing giant Fannie Mae.
“In fact, the decline between 2013 and 2014 was statistically insignificant, the first indication of stability in the number of young home owners since the onset of the Great Recession,” Fannie Mae notes in its report.
While the number of 25-to 34-year-old home owners has been on a decline, that trend is likely headed to reverse soon, Fannie Mae’s points out.
The labor market continues to strengthen for this age group and the desire for home ownership is still strong. Only 12 percent of millennials rated home ownership as “not very important,” according to a Goldman Sachs report published earlier this year. Nearly 70 percent said ownership was either “very important” or “important” and 20 percent said they already owned a home or were in the process of purchasing one.
Fannie Mae’s report notes that homebuilders will need to build more to meet the demand coming from an upswing in millennial buyers and adjust the “size, type, and geographic location of new housing construction.”
Source: “Fannie Mae Says Millennials Are Finally Leaving Their Parents’ Basements,” Bloomberg (Dec. 16, 2015)