According to a recent TransUnion analysis, 55 percent of the people who shopped for a mortgage in the first quarter of the year were first-time homebuyers. In comparison, only 35 percent of all buyers were first-time homebuyers last year.
CNBC reports that the share of Millennials who are looking for their first home has been growing over the last few years.
Housing experts break the Millennials who rent into three segments: Those who can’t afford to buy, those who prefer to rent, and those who will eventually buy. The number of eventual buyers is expected to rise as the job market and economy improve, and as young adults continue to improve their credit and get accepted for mortgages.
Though rising prices and tight inventory serve as roadblocks for homeownership, rents aren’t particularly cheap, either.
"As rents have gone up fairly significantly in the last few years, homeownership, although it's gone up as well, it may have become relatively more affordable," says Mike Doherty, senior vice president of TransUnion's rental screening solutions group.
Related Stories
Market Data + Trends
New-Home Sales Outpace Existing Home Sales in January
As existing home sales inched forward in January by 0.6%, new-home sales grew at a stronger rate of 4.3%, according to data from the Census Bureau…
Market Data + Trends
Is the Pandemic Entirely to Blame for Record-Low Housing Inventory?
Although it has appeared that the suburban shift resulted directly from the pandemic, data shows this shift has been ongoing for several years,…
Housing Markets
These Spillover Markets Are the Hottest in the Country
Spillover, or secondary, markets are dominating real estate as more buyers move to less dense, more affordable, and spacious areas. The metros…