Millennials Changing Their Tune on Home Buying?
The narrative has long been that Millennials are breaking from their parents’ generation when it comes to housing, often preferring to rent or even live with their parents due to factors such as student loan debt and the job market. But, that trend could be changing. LendingTree CEO Doug Lebda discusses the signs of a potential shift in Millennials’ housing preferences.
Lebda first addressed why it is important to track the trends in Millennials’ housing preferences.
“I think obviously it’s important because they were the least likely to buy homes and the knock on them is that they were going to be renters not home buyers for the rest of their lives. And I think what we’re seeing here is that they’re actually making smart decisions,” Lebda told the FOX Business Network’s Maria Bartiromo.
With greater concerns of terrorism, Bartiromo asked whether safety factors into where Millennials are choosing to buy homes.
“Well, I think it actually does,” Lebda continued, “You’re not seeing people moving to places like New York City, Chicago or Detroit. You’re seeing people move where jobs are and you’re also seeing signs of safety.”
Lebda remained bearish on the housing market, despite the Federal Reserve’s decision to raise interest rates.
“We think the housing market’s going to continue strong, that rates are probably going to stable at 5% for the year, still very historically low. The biggest thing is really obviously home affordability, home values have been rising in many cities. But the mix between home affordability and the actual interest rates are what matters.”
In terms of where Millennials’ choose to live, Lebda saw two key factors driving their decision.
“I think it’s the combination of affordability and good jobs. I mean, you can’t obviously buy a house without a good job.”