Homeownership among the Millennial generation has spiked 64% over the past five years and is still on the rise, despite a combination of factors—from low housing inventory and high home prices to persistently high interest rates—that are making it tough for some would-be buyers to achieve homeownership. In an annual consumer survey conducted by Forbes, this year 49% of respondents who considered buying a home ultimately decided against it—that's more than double the share who said they gave up on the homebuying process in the 2022 study.
While many prospective buyers are retreating, Millennials are persevering despite being at a financial disadvantage. Roughly 61% of Millennials surveyed said they plan to buy a home in 2023, and according to Forbes, many will likely be successful regardless of what it may cost them.
Considering the tight supply and competition right now, it appears they’re willing to pay higher price tags and interest rates in order to not lose out on the home they really want (the one with additional square footage, office space, tech upgrades, etc.). I believe that Millennials are savvy enough to know that when rates drop, they can refinance and secure a lower rate (and subsequent mortgage payment). In other words, they’re not afraid of a little short-term suffering for long-term gain, at least with respect to achieving homeownership.
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