When it comes to the economy and future forecasts, experts place a lot of emphasis on millennials. It seemed that one cannot read the papers without coming across headlines about millennials destroying one or more industries. The claim that millennials aren’t buying houses is a widely touted “fact.” Is this, however, correct? Let’s look at it more closely.

The old wives’ tale

It’s been stated for a long time that millennials don’t buy homes because they still live with their parents. The story has been that they are enslaved by debt (particularly soaring student loan debt) and trapped in low-wage employment. They have been unable to purchase homes as a result of this financial combination, according to the theory. It’s becoming increasingly obvious that this story isn’t true.

You might be surprised by the facts

The fact is that, according to a National Association of Realtors survey, millennials have had the largest percentage of house purchases for the past five years. They accounted for more than one-third of all house purchases in 2017.

Why are millennials finally making a purchase?

While part of the outrage about millennials not buying homes was overblown, it is true that they are buying homes in greater numbers now than they were previously. This is due in part to the fact that millennials are getting older, which means their incomes are increasing while their debt is decreasing.

Many people lived with their parents after college and are now able to afford down payments since they have some money saved. Finally, millennials are more likely than previous generations to feel that purchasing a home is a good investment.

One major concern remains: starter houses are in short supply

The real issue right now isn’t millennials, but rather the housing market. There is a severe shortage of starter houses available, regardless of the buyer’s age. According to one prominent real estate website, the number of available starter houses fell by around 15% in the first quarter of 2020 when compared to the same period the year before. Millennials have two choices: continue to rent or purchase a property that is out of their financial range.

Millennials picked homes that cost more than $300,000 in about 33% of cases. According to studies, size isn’t the most important aspect; instead, amenities and location are more important. They want their houses to be ready to move into as soon as possible, and they want to be close to transit and/or tourist attractions.

Keeping up with the latest trends

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