It’s been said that Father Time is undefeated. And that time waits for no man (or woman).
These universal truths even apply to Millennials.
Not even the increasingly sought-after and eternally hip segment of the American population is immune to aging. And as more and more Millennials get married (even though they tend to do so at later ages than previous generations) and have children (they’re also likely to have less than previous generations), they’re also tending and “trending” to move to the suburbs more frequently. It’s not all about aging and “settling down,” however. Sky-high urban home prices and rents have helped drive more Millennials into the suburbs in recent years.
According to an annual survey of around 95,000 homebuyers by the National Association of Realtors (NAR), only 17 percent of Millennials recently bought homes in urban or central city areas. That figure was down from 21 percent in the previous published NAR survey.
Of course, Millennials are still relatively young. And the median age of a Millennial homebuyer is just 30 years old, per NAR data.
Home prices have been rising fairly steadily over the past several months, and rental rates have also been surging upward. There have also been issues with the available supply of homes for sale, especially in urban areas. Home builders today don’t seem very focused on first-time buyers or smaller homes, making it harder for Millennials (who are often saddled with historic student loan debt) to enter the home market for the first time. In fact, the majority of Millennials cited student loan debt as a primary barrier to saving for a down payment on a house.
Despite the challenges facing them, Millennials have expressed an increasing desire to become homeowners. After all, homeownership is a cornerstone of the American Dream, no matter which generation you ask. A robust 48 percent of the Millennials surveyed said this deep desire was their primary reason for buying a home – up from 39 percent in the previous survey.
Millennials are nothing if not determined, driven, and resourceful. If opportunities to transcend challenges or hurdle obstacles exist, they’re a group that is extremely likely to capitalize on those opportunities.
At Impac Mortgage Corp. Wholesale, we understand and respect this determination, resourcefulness, and drive. That’s why we offer our wholesale lending partners a wide variety of mortgage loan products – including many designed to assist non-traditional and/or non-qualified buyers with home loan purchases. Our AltQM™ product series is particularly geared towards helping brokers and their customers achieve the American Dream of homeownership – even in the face of daunting obstacles and serious challenges.
Contact us today to see how we can help you and your customers achieve all their dreams of homeownership – whether it’s deep in the heart of the city, or out in the quieter enclaves of the suburbs. And tap into the ever-expanding power and reach of the Millennial market.
We’d love to work with you and your Millennial clients today!