Numbers count. They matter to bankers and to prospective homebuyers, sellers, and real estate professionals. Here’s my take on the key numbers on the housing market this week.
The numbers: Millennials boomerang
Nine out of 10 millennials born between 1980 and 1984 moved out of their parents’ household by age 27, and half of those who moved away returned, according to a new survey from the Bureau of Labor Statistics. The highest percentage of boomerang millennials was among those with a bachelor’s degree or higher – 59% returned home. Only 48.5% of those with a high school diploma returned home and 52.6% of those with some college returned home. The analysis also found that young adults from families with higher incomes were more likely to move back home. Finally, most millennials who established independence and then returned home had moved out again and were no longer in their parental households at age 27.
What counts: Are millennials in the housing market or not has been a hotly debated topic in recent months. This analysis supports the view that millennials may be waiting longer than prior generations to enter the housing market. That said, Zillow is predicting millennials will become the largest group of home buyers in 2015. That means more demand for starter homes, and, according to a report last month from the National Association of Homebuilders, 75% of millennials surveyed want to live in single-family homes, and 66% want to live in the suburbs. The survey also found younger buyers want slightly smaller houses with laundry rooms and home technology.
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