Millennials Ascendant in Real Estate and Debt

Dec. 6, 2017

New data show that millennials took the greatest share of all new mortgages, and buying a greater share in all price tiers of the housing market while taking on more debt.

A generation burdened with student loan debt, millennials are starting families and buying houses in an economy where home price growth is outstripping wage growth. "It's a mixed bag for millennials," Danielle Hale, chief economist for Realtor.com said, adding, "The important metric is looking at down payment percentages and debt-to-income ratios, and the fact that those have been pretty consistent for millennials is a positive sign."

Despite millennials taking on a greater amount of debt as they reach for those more expensive houses, their debt-to-income ratios haven't gone up much—a sign that their incomes are improving as well. In October 2015, the average debt-to-income ratio of a millennial mortgage applicant was 37 percent. In October of this year, it was 38 percent.

Read more

Sign up for Pro Builder Newsletters
Get the latest news and updates.

Related

139805716 © Andrii Yalanskyi | Dreamstime.com
Wooden blocks with coins and the word 'wage' and an up arrow
5130118 © Mark Hryciw | Dreamstime.com
Single-family home under construction