They’ve definitely moved out of the basement.
U.S. homeownership rates rose last year for the first time in 13 years, driven by young buyers purchasing their first homes.
All the hand-wringing about millennials living in the basement and never being able to buy their own home has proved to be unfounded.
The largest demographic group – those under age 35 – has bounced back, driving homeownership rates to the highest level since before the housing crisis.
“What’s driving the market is a shift in favor of owning rather than renting coming from the largest homebuying generation since the baby boomers: millennials,” says Laura Kusisto writing for the Wall Street Journal.
What has delayed the homebuying tsunami is stricter mortgage rules, which make it harder to finance a home purchase, and the fact that millennials have tended to wait longer before marrying and having children. But now that they are settling down and building families, the desire to own a place of their own – along with old-fashioned financial discipline – are overcoming any obstacles.
“Once we got married, it became real,” one buyer told the Wall Street Journal. “We wanted a yard.”