Although it should come as no surprise, recent reports indicate that those aged between seventeen and thirty-one will largely dictate the future of the housing market. In 2011, the group accounted for roughly thirty percent of home purchases. Economists believe that number must rise for the residential real estate market to show a sustained improvement over the next decade.
There are conflicting beliefs as to the reason why the millennial generation has not taken a larger percentage of the property market by now. Some optimistic economists believe that most young buyers do have their sights set on buying a home, but they are biding their time until the residential real estate market has clearly entered the recovery phase.
Others are not so optimistic. The job market for the older millennials has struggled tremendously for the last five to six years. Many of those in their late twenties and early thirties are starting families, and should be primed to buy their first home. Unfortunately, many do not yet have a stable career, as most jobs are still held by baby boomers or are being given to the most recent college graduates.
Without a stable job situation, there does not really exist any opportunity to buy for many of the older millennials. Unless things start improving, that group may never be able to realize their dreams of home ownership.
Economists believe that those aged eighteen to thirty-one are the most ideal candidates for long-term opportunity and growth in the housing market. As of right now, the majority of that group has opted to rent, and there is no clear sign as to when they may decide to become homeowners.