The Wall Street Journal reported last week that homeownership rates are on the rise for the first time in 13 years thanks to the highly scrutinized generation: millennials.
Despite rising house prices, tight supply, and strict lending conditions, millennials stayed committed to their financial goals and spurred buying activity. The rate was reported at 64.2% in the fourth quarter of 2017, up from 63.7% in 2016. The biggest increase was with buyers under the age of 35, rising from 34.7% to 36%. This annual increase marks a crucial turning point because it comes after the federal government reined in bubble-era policies that encouraged banks to ease lending standards to boost homeownership. Not only does demand for homes help drive construction, but new homeowners also spend money on furniture, landscaping and other goods and services, boosting economic activity.
Congratulations millennials and first time home buyers! Portland Home Team has experts in the first-time home buying process. If you or anyone you know is looking to buy a first home, contact us. We want to help you achieve your goals.