What The Silver Tsunami Means For The Millenial Homebuyer
Despite the daunting undertaking, more than 75 percent of millennials say they would like to see themselves as homeowners, with their numbers increasing from 30 percent back in 2014 to 37 percent.
So what roadblocks are hindering millenials from steadfastly pursuing homeownership? Low wages, student loans, limited supply and high prices, just to name a few.
But of course, solutions can be found. Helping millenials learn and understand credit scores and federal and state low-down payment programs can help pave the way to consider their options and formulate a plan.
In the case of the tight inventory that's been pushing home prices up these past few years, better days seem to be on the horizon. As many as 20 million homes look set to come to the market in the next 20 years due to what analysts are calling the “silver tsunami” where baby boomers downsize by selling their mid-size to larger homes.
Baby boomers own about a third of homes in the nation and by 2037, 27% of properties belonging to those 60 and older will become available as their owners age. The effects of this wave will not affect all markets at the same time but it will be felt to some degree, with states popular with retirees like Arizona feeling the sharpest impact.
And in markets that will be impacted the most by the Silver Tsunami, why rent when the influx of homes released by this wave will make homeownership more attainable and affordable? The effects of the wave will be felt gradually over the next couple of decades but for millenials or any prospective homebuyer for that matter, it's definitely something to keep an eye on.
If you have any topics or questions you would like answered, contact The Shanna Day Dream Home Team - we’ll find the answers for you!
Shanna Day Dream Home Team
Keller Williams Realty East Valley