When the rate of homeownership is at a 50-year low, but people of all ages and ethnic backgrounds continue to say that owning a home is part of their American dream, it's no wonder that real estate agents and brokers have questions about the future of homeownership. Mark Fleming and Odeta Kushi, economists at First American Financial Corporation, dug deep into the motivations and challenges of today's homebuyer for a new study, "Six Trends Poised to Reshape Homeownership Demand." As millennials -- potentially the largest-ever generation of homebuyers -- come of age, their needs and lifestyles are going to influence what buyers want. "While it may not be a surprise that homeownership remains a priority, it may come as a surprise that millennials have not been discouraged from this goal," Fleming and Kushi write. "Millennials are often referred to as a 'renter generation,' because they have prioritized their education and tend to concentrate in metropolitan areas. "But the Ameri...
- Millennials are typically marrying and having kids later in life -- after securing a college degree.
- Stagnant income growth and lingering concerns from the recession are also impacting homeownership.
- Even controlling for other factors, the gap between white and Asian, black and Hispanic homeownership exists.
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