Millennial Baby Boom

Published on December 26th, 2014

Millennial families are expected to have a positive impact on home sales in 2015

As more and more Millennials enter their adult years, they are taking advantage of the steadying economy. The recent increase in employment has also led to more of this generation starting families and shopping for a home to set down roots to raise their little ones.

According to a recent publication by MarketWatch, with unemployment rates at their lowest levels since 2008, job opportunities for this educated generation are increasing. This is leading to more financial stability for Millennials to start a family.

The article mentions that the last hike in births was in 2007 and with 2014 coming to a close; the numbers of births from this year to Millennial parents is starting to resemble the numbers seen in ’07. These numbers will not only lead to more Millennials entering the home buying market, but could also continue into 2015 as this generation becomes more established in their late 20s and early 30s.

What’s expected?

Since increasing family sizes are often a key indicator of home sales, this hike in the number of Millennials welcoming the next generation has led to a forecasted 8% increase in existing home sales for 2015. These findings also predict a 16% increase in home starts and a 25% increase in new home sales for Millennials in 2015.

What about the expected increases in home prices and mortgage rates?

While we have been tracking the expected incline in home prices and the rise in mortgage rates for 2015, these numbers aren’t expected to close Millennials out of the housing market. As the Federal Government works to open more doors for responsible lending for first-time buyers and the job market sees an influx, the housing forecast for these young, Millennial families is starting to look bright for 2015.

For more information about purchasing your first home or to hear more about the lending options that are available, please feel free to contact us and speak with a member of our Housing Buzz Team.

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