Millennials to drive housing market in 2020
America's youth are slated to take on more than half of all mortgages in the coming year
Millennials are projected to fuel the housing market in 2020, overcoming the high debt and financial restraints that once held them back to take out more than half of new mortgages in the U.S.
The generation's share will surpass that of Gen Xers and Baby Boomers combined, according to Realtor.com’s 2020 Housing Market Predictions. Gen Xers will account for 32 percent of new loans and Baby Boomers for 17 percent, the report estimated.
The largest generation in U.S. history, millennials have increasingly become a focal point for both economists and businesses trying to gauge customer demand in the future.
2019 HOME SALES STRONGEST SINCE 2006
Since they have waited longer to enter the housing market than their predecessors, the latest figures are encouraging, Omeed Malik, founder and CEO of Farvahar Partners, told FOX Business' Maria Bartiromo on "Mornings with Maria."
"This is a generation that grew up after the financial crisis, so they have been stifled to start families because of student debt,” Malik said. "I am really happy to see that, that they are coming of age and able to get their first homes and start a family.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
This year alone, a large portion of millennials, roughly 4.8 million, will be turning 30, which is considered "peak home-buying age," according to the report. As millennials mature and start to have families, with the oldest members of the generation reaching 39 years old in 2020, their priorities are shifting toward affordability.
Older members of the generation have begun to flock from large, expensive coastal markets such as New York, Los Angeles and San Francisco to midsized cities "in search of quality of life and amenities at a more affordable price point," according to the report.
That trend is projected to continue in 2020, with millennials searching for family-friendly lifestyles and affordable housing. Baby boomers retiring and seeking sunnier weather, lower taxes and lower cost of living will drive the same trend.