Boomerang Millennials A Promising Sign for Housing
According to new research from the National Association of Home Builders, 90 percent of young Americans born between 1980 and 1984 moved out of their parents' home before the age of 27. Half of them, however, eventually moved back in with their parents.
This phenomenon, known as “boomeranging,” runs counter to the historical trend and means many Millennials aren't taking the typical path to homeownership that previous generations followed. Combined with the fact that most of these same young adults express a desire to one day own their own home, this trend could indicate that – though the number of first-time homebuyers active in the market has lagged in recent years – there is a significant amount of pent-up demand that, when released, will propel the housing market forward. In other words, there is reason to believe many young Americans will become home buyers in the near future.
David Crowe, NAHB's chief economist, said understanding the makeup of those who return to their parents' home could shed light on when that might happen. “The data may indicate that while this age group is delaying what we think of as typical milestones, the combination of resources and education and what we have found about their preferences suggests growing housing demand in the years ahead,” Crowe said. More here.
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