Confidence in the housing market is improving, as millennials – the largest group of recent buyers – are seeing their purchase as a good investment, according to a recent study from the National Association of Realtors (NAR).
The study, published earlier this month, found that 87 percent of millennials – those born between 1980 and 1995 – are happy with their decision to buy a home. This is the peak time for those in this age group to make their first home purchase, NAR chief economist Lawrence Nun says.
“Given that millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand,” he says. “Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people.”
This generation does face some challenges, such as tight credit and debt loans, which prevent more young adults from buying. In fact, 56 percent of the millennials who said they took longer to save for a down payment said student loan debt was the biggest obstacle.
The percentages of older generations – ages 50 and older – who purchased homes recently were significantly lower than millennials and the age group right below them, Generation X.
The study also showed signs of a growing multi-generational trend, where adult siblings, adult children, parents and sometimes grandparents all live under one household. Fourteen percent of all home purchases were of this kind.
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