June 28th - Why Are Millennials Buying Homes Rather Than Renting Them?

Q1 2017: Household Formation Up, Millennials Entering Market

Millennials are entering the housing market in greater numbers, and this is a positive sign on several levels.  In the first quarter of 2017, new household formations occurred at double the rate of new renter households.  “New household formation” refers to first-time home buyers.  Terry remarks that the home ownership rate nationwide was at 70% before the “great recession,” which bottomed out around 2011, and has been slowly recovering to the 64% rate it’s at today.  Millennials are key to the continued revival of the housing market, and these household formation numbers are an encouraging sign that this demographic is embracing homeownership and successfully buying their first homes.