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Millennial Homeownership Edges Up, Young Adults Still Favor MF Lifestyle
Early Bird Alert: Connect Apartments is planned for September 28th in Los Angeles. Here’s where to get more information and register.
U.S. homeownership increased nearly a full percentage point in June, after falling to a five-decade low in Q2 2016. Researchers at Marcus & Millichap say the jump was driven by more Millennials buying homes.
The Millennial homeownership rate advanced 120 basis points year-over-year to 35.3%. Sales activity will continue to be constrained though, as a result of limited for-sale inventory and the lack of new home construction, especially in the entry-level home segment.
Demand for apartments is expected to remain strong, predicts Marcus & Millichap, since Millennials’ lifestyle preferences, low savings rates and high college loan debt all favor renting. Though single-family construction starts are increasing, it likely won’t match the accelerating pace of household formation, and demand is expected to outstrip supply additions by nearly 100,000 units.
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