Solving the affordability issue has many facets--regulation, process, product, labor, capital, land--that not only affect the Millennials current need for housing, but will impact future generations as far out as we can imagine. The solutions that we come up with now will shape future options.
Metrostudy outlines the situation and will be part of a host of experts addressing various aspects of housing affordability during the second annual HIVE conference.
Here’s the good news: Income growth among 25- to 34-year olds — the millennial generation — grew 5.6 percent last year. And first-time homebuyer loans are up. Millennials are buying homes and debunking the myth that they don’t want to be homeowners. High student loans are beginning to fade in the background and they’re marrying and starting families. With that comes the urge to have a home of their own.
While they’ve put off buying a home longer than other generations — the average age of a first-time home buyer is 33 — “the leading edge of millennial population is just now becoming the ‘new normal’ of home ownership,” observed U.S. Homebuilding Analyst with Bloomberg Intelligence Drew Reading at the Bloomberg Intelligence + Metrostudy Homebuilding Strategy Summit in March.
Entry-level demand is increasing
“As more [millennials] age, there’s huge demand behind home ownership,” he said. “This large base of population growth gives you the sense that demand for entry level, either in rental or the for-sale market, will be strong in the next several years.”