In a recent story published by U.S. News & World Report, Zillow predicted that 2015 will be the selfie generation’s breakthrough year when it comes to moving from rentals to house ownership. According to the company, millennials will surpass Generation X as the biggest home buying generation as the growth in home values decelerates and rents continue to rise.
Did you know there are 87 million millennials as compared to 76 million baby boomers? About 42 percent of millennials say they want to buy a home in the next year to five years, compared with 31 percent of Generation Xers, which Zillow defines as adults 35 to 50.
The best housing markets next year for first-time homebuyers, according to Zillow, will be ones with strong income growth among 23- to 34-year-olds, significant growth in entry-level homes on the market and affordable prices.
Zillow anticipates that home values will grow in 2015 by 2.5 percent, down from 2014 appreciation of six percent, while rents will grow around 3.5 percent. It also expects construction to shift toward less expensive homes rather than big, expensive ones – which will be important for many budget-conscious first-time buyers.
No matter the forecasted trends, rest assured First International Title will be prepared to handle everyone’s needs. As we draw closer to the New Year, may we all hope for continued peace and prosperity.