Are Millennials Ready to Buy?

By AFN Media Mortgage

We don't have an exact science when predicting the future of home ownership in America.But despite the fact that we’re currently at a half-century homeownership low — less than 63 percent, many are still hopeful about the future of homeowners. 

Millennials may boost the rate once more of them start having families. They’re more diverse than their parents’ generation, which could mean an increase in minority homeownership. Seventy-three percent of baby boomers are non-Hispanic whites, while 59 percent of millennials are non-Hispanic whites, according to Fannie Mae. 

The income and education gaps that are responsible for some of these differences may be narrowed or eliminated as the U.S. becomes a ‘majority minority’ country. And the mortgage market may shift in ways that chip away at the remaining gaps.

A newly released consumer housing trends report from Zillow Group backs proves some of this optimistic outlook. 

"Half of homebuyers in the U.S. are under 36, meaning a new generation millennials is shaping the future of real estate," the study said.

The study also points to millennial diversity. “While only 9 percent of all homeowners are Hispanic, nearly 15 percent of the millennials buying homes are Hispanic reflecting the changing demographics of the American middle class.

No matter how you look at it, the Millennials are poised to be the next generation for homebuying.