Millennial Renters Are Looking To Buy
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.