Generation Y used to be a small part of the housing market, but now the Millennials account for more than one-third of all home purchases. Data from the National Association of Realtors shows that “older Millennials,” those born between 1980 and 1989, by themselves account for 26% of all home purchases. The older Millennials, now in their thirties, have started having children and are showing an increasing desire to own a home. And sometimes, those homes are in (shudder) the suburbs!
The transition of this generation, 80 million strong, out of their parents’ basements and into family life and home ownership is a major factor driving overall demand for new homes nationwide.
Growth in the number of households had been as low as 534,000 back in 2009, during the recession, but now it is again well over 1 million. The various sources of data on household formations show that we are now up to somewhere between 1.2 million and 1.5 million per year.