Over the next five to ten years 3.1 million millennials are going to enter the age of typical first-time homebuyers. However, due to low inventory for homes, student debt, and delayed marriage (amongst other factors), almost 22% of millennials are returning home to live with their parents after college graduation.
According to a recent analysis by Zillow reports that “nearly 45 million Americans will reach the general age of first-time homebuyers in the next 10 years, 3.1 million more than in the 10 years prior.” Additionally, CNBC states that “fewer of them can afford to buy a home. The homeownership rate among millennials is about 8% lower than previous generations at their age.”
Additionally, over the last five years, prices for starter homes have increased 57%, while inventory is down 23%, according to Zillow.
This presents an opportunity for homebuilders to build new homes, at the right price, for the incoming wave of new home buyers.