Main Line Homes for Sale – Could the Millennial Housing Slump Be Turning Around?
One continual topic of discussion in the housing industry for the last several years has been the problem of home-buying among the youngest generation of adults. Or, rather, the lack of home-buying. Home sales to those under thirty have been anemic, and a matter of some concern to both Realtors® and home-builders.
However, we are now seeing signs that the slow real estate situation may be changing. Our own experience with Main Line homes for sale, as well as national statistics, suggests that Millennials may finally be entering the housing market in larger numbers.
The Stay-At-Home Generation
Home sales to Millennials have been lower than to any other generation in nearly a hundred years. For the first time since the Great Depression, young adults have been more likely to be living with their family than with a spouse or significant other.
Part of the trend is tied to lower rates of marriage among young adults. In the 1960s, the average age of marriage was in the low 20s, with 10% of people over 25 never marrying. Today, the average age of marriage is nearly 30, with projections suggesting that up to 25% of the current generation may never marry.
Unmarried people may feel less need to move out of their parents’ homes. Other arguments regarding the housing issue point to the inability of wages to keep up with the rate of inflation, or with the rising costs of homes in most of the metro areas that have the best jobs. The combined mentioned factors -and more- haveencouraged younger people to rent, rather than buy.
Whatever the reason, sales of starter homes have been below averagefor the last several years. Last year, Builder Online went so far as to declare starter homes “nearly extinct.” Yet, things may be turning around.
A New Millennial Home-Buying Paradigm?
In just a single year, Builder Online now reports a much larger number of starter homes being built, with builders surveyed reporting a 50% uptick in new starter home orders. Here at Sage Realty, we have also seen more Main Line homes for sale going to younger buyers.
The aging nature of the Millennial population may largely be responsible for the new change in sales. As Millennials move into their thirties and earn better wages, they finally have enough of a stable financial situation to make a larger home investment. In addition, when ready to buy, they are choosing homes outside of big cities that give them more space.
Call Sage Realty for Main Line Homes for Sale
Whatever the reason, 2017 could be a good year for Main Line homes for sale to younger buyers. Should these trends continue, the housing market could benefit substantially.
For more information about real estate trends and Main Line homes for sale, please contact the team at Sage Realty today!
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