July 22, 2020

From pent-up demand to aging and finances, the stars appear aligned to make this decade a hot time to see millennial homebuyers jump into the market.

MIAMI – According to the sixth annual First American Homeownership Progress Index, millennials are expected to lead a rising demand for homes across the country. The index measures how a variety of lifestyle, societal and economic factors influence homeownership rates over time at national, state and market levels.

Market forces have delayed millennial homeownership but demand among the demographic remains strong.

“Millennials are the largest generational group in the history of the U.S., and that’s not the only thing that differentiates them from their generational predecessor,” says First American Chief Economist Mark Fleming. “Millennials are more diverse, more educated and have historically chosen to delay critical lifestyle triggers to buying a first home, including getting married and having children, in favor of furthering their educations.”

The report finds that homeownership among millennials rose three percentage points in 2019, outpacing the gains of both Generation X (1.7%) and baby boomers (0.8%).

“It’s clear that as millennials form households and begin to make lifestyle decisions, such as getting married and starting families, they are increasingly choosing homeownership over renting. ... Despite the pandemic-driven economic downturn in 2020, millennials are still aging, in large numbers, into the key lifestyle decisions that increase the likelihood of homeownership. This year, the largest section of millennials will turn 30, entering their prime homeownership years.”

The report shows that homeownership demand in Florida was flat in 2019 at 0.0%, although in Miami, demand was slightly higher at 0.6% year over year.

Source: Miami Agent Magazine (07/06/2020) Kennedy, Kerrie

Information provided by Florida Realtors. Click here to see the original article.