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Millennials not buying homes

Posted by The Aramco Group on Thu, Sep 15, 2016 @ 14:09 PM

While homeownership rates have fallen across all age groups, younger Americans in particular are sticking to renting. A new study conducted by real estate consultant and author John Burns, shows that homeownership rate among 25 to 34 year-olds has dropped to just 39 percent – a new low.

Homeownership rates overall have fallen steadily since the recession began in 2007 and are currently at their lowest rates in over half a century. Nationwide, the rate fell in 57 out of 70 metropolitan areas, even as mortgage rates continue to hover near all-time lows.

The paltry number of millennials who own a home is in part due to the growing number who are choosing not to form their own households. Roughly a third of that age range live with their parents, the largest number in recent history.

With rising home prices, Burns expects this number to continue falling. Meanwhile, conforming no-point 30-year fixed rates averaging 3.375 percent while the 15-year rate is near 2.75 percent.

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