Home / Business / Ownership rate for young people hits highest since ’13
According to a Homes.com survey, buying a home is the most stressful life event for some. Elizabeth Keatinge has more.
Rising mortgage rates? Higher prices?
the first time in 12 months when the increase has fallen below 6%. No problem.
Millennials are shrugging off those growing housing market obstacles and snapping up homes in greater numbers as they land better jobs and bigger raises. They are also getting married and starting families after putting off those life-changing events.
The homeownership rate for Americans under 35 jumped to 36.8 percent in the third quarter, the highest in five years, the Census Bureau said Tuesday. The share of millennial homeowners was up sharply, from 36.5 percent in the second quarter and 35.6 percent a year earlier.
But the young adults, largely first-time homebuyers, drove the national homeownership rate to 64.4 percent – highest since 2014 – from 64.3 percent the previous quarter.
The report was somewhat surprising in light of a housing market that has sputtered this year, with home sales falling amid low supply and rising mortgage rates and prices. Thirty-year fixed mortgage rates averaged 4.86 percent last week, up from 3.94 percent a year ago.
But those hurdles have been offset by an improving labor market. Millennials who struggled to find jobs after the Great Recession of 2007 to 2009 are the ones who better match their skills and seeing bigger pay increases, says Ralph McLaughlin, chief economist of Veritas Urbis Economics.
“They had to come up with a down payment, they had to overcome bad credit, “McLaughlin says. “They Still Want To Own Homes.”
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And while domestic home supplies are still low, they have gradually increased to 1.91 million in September from 1.86 million years ago, according to the National Association of Realtors.
Market slowdown helps
Skylar Olsen, director of economic research for real estate site Zillow, says the slowing housing market has actually had aided millennials who are facing somewhat less competition as they hunt for their first home.
Luke Gabig of Pittsburgh thought he and his fiancée, Gabi Garver, had snared their dream house for two years ago only to have another buyer wrest it away at The last minute with an all-cash offer. “That was annoying,” said the 26-year-old benefits administrator.
They decided to give up their search and continued to rent. Men i august, de deltog i et åbent hus for en tre-værelses ranch på den første dagen, og blev straks tilbudt $ 10,000 over $ 150,000. They got it.
After graduating from college in 2012, Gabig worked restaurant jobs because he could not land a position in his field. He finally did in 2014 and has received healthy raises since then while Garver has gotten a job as a phlebotomist, a medical professional who draws blood after earning a certificate two years ago.
“We just got lucky,” Gabig says of the purchase.
A mountain of student loan debt was prevented Nicholas Dwayne, 33, of Chicago, from buying a home for years. But his wife, Julie, has amassed healthy savings, allowing the couple to buy a two-bedroom $ 285,000 condo last year before they got married.
“Rent is throwing money down the drain,” Dwayne says.
The surge in millennial homeownership is a sign the recent housing slowdown is likely temporary, McLaughlin says. “Fordi den gruppen er så stor, kan den hjelpe amerikanske housing market indefinitely, “he says.
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