There was a surprise powerhouse behind the 2021 real estate market—Millennials. The generation, which had previously eschewed homeownership, made up 67% of first-time homebuyers from January 2021 to August 2021 and about a third of repeat mortgage applications during that same time.
Why was this a surprise? According to Florida Realtors and the Federal Reserve Bank of Saint Louis, in 2019, older Millennials had a household income that was 11% lower than what older Americans had at their age. The gap was even bigger for younger Millennials, whose net worth was 50% below the average. This income disparity slowed Millennials’ entrance into real estate. Now, with the youngest Millennials hitting 30, home equity has gained importance among the generation and more are becoming homeowners.
With many Millennials ready to purchase a home, however, housing inventory levels remain low. That means that there is more demand for housing than there are homes to purchase. With the Fed indicating that rates will continue to rise, mortgage rates will likely be rising this year. This may diminish some demand in general. But with many Millenials having already put off buying a home for years, home demand from that generation will likely not decrease any time soon.
If you have remained hesitant to sell because of the current climate, don’t wait too long. New home construction is increasing and buyers may have more housing inventory to choose from soon. Get your home listed and sold with a Tampa real estate expert. Contact me today to get started.