In the first quarter of 2017, more new US households preferred to purchase a home than rent in the first quarter of 2017– the first time the scale has tipped that way in more than a decade, according to a Wall Street Journal report.
Data from the Census Bureau indicated that 854,000 new-owner households were formed in the first quarter of the year, handily beating the 365,000 new-renter households formed in the same quarter.
“They’re crawling out of their parents’ basements, they’re forming households and they’re looking to buy,” Doug Bauer, chief executive of home builder told the Journal.
Zelman & Associates, a housing-research firm, said that in Q1 2017, 31% of homes built by major builders were reportedly in the starter-home range (2,250 square feet).
St. Louis, Mo., was the best housing market bet for millennials based on their median income, according to real estate investment firm HomeUnion, while Zillow reported Orlando, Tampa and Indianapolis as some of the best markets for young homebuyers based on median home value and home value forecast compared to renting.
"Millennials recently eclipsed baby boomers as the nation's largest generation, so it is imperative that they have quality long-term housing options," Steve Hovland, director of research for HomeUnion, told the Journal.
Builder confidence increases in May
Recent data has shown that renting can cost more than owning a home, and with millennials gearing up to the responsibility of owning a home, home builders are shifting their strategy to cater this age group.