And this has a big impact on the areas where homebuyers are looking to purchase.
Though, as noted above, with the stock of homes expected to go up slightly, this glut of millennial buyers will likely keep demand and prices high.įirst-time homebuyers should also note that as a direct result of the ongoing COVID-19 pandemic, there is an increase in the number of people working from home. More than 45 million Millennials will be within the prime ages between 26 and 35 for buying their first home in 2022. Once change shows that Hispanics now make up more than one in 10 recent homebuyers, which tracks with overall population shifts in the country.Īnother shift poises Millennials homebuyers as a driving force in the market. The study points out interesting demographic shifts that will define the housing market in years to come. While millennials turning 40 are among the highest wage earners when compared with older generations at their age, they hold much less wealth than those age groups.įor a comparison, using data from the Federal Reserve, a boomer who was age 32 in the second quarter of 1990 owned 21.4 of household wealth in the U.S., while Gen X-er at the same age only owned 3% in the second quarter of 1997 and a millennial owns 5.6% in the second quarter of 2021. That sales growth would represent a 16-year high for home sales nationwide.Īll of this taken into account, affordability will still be an important consideration. Additionally, the firm predicts a small bump of 0.3% in the inventory of existing homes, a 5% jump in housing starts for single family homes and a home ownership rate of 65.8%. The study also found that in that year, the number of starts on new single family homes went up 15%, and the overall homeownership rate stood at 65.5%.Īnd for 2022, the online real estate firm forecasts that existing home median sales prices will go up 2.9%, and the number of existing home sales will also rise 6.6%. And while there were six million home sales, the for-sale inventory of existing homes was actually down 18%. says that home median sales prices appreciated by 12% from 2020 to 2021. But the study also shows that the path to buying a first home will not be easy. And with rents forecasted to grow 7.1% in 2022, outpacing for-sale home prices growth of 2.9% in the same year, this could be a great opportunity for Millennials who are in the prime age of a first-time homebuyer (26 to 35). While mortgage rates and home prices are expected to rise in 2022, says that a growing economy, a strong employment market and workplace flexibility will empower many homebuyers to buy their first homes.
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