Turnaround: Millennials driving housing momentum?
Housing optimism boosted by millennial confidence
Millennials are now the key driver behind housing confidence, which is quite the anomaly given millennials’ hesitance toward the housing market over the past year.
According to the latest Zillow Housing Confidence Index, the headline U.S. ZHCI increased to 64.2 over the summer, up from 63.7 in January, and housing confidence increased among residents in 11 of the 20 major metro areas surveyed.
“It’s heartening to see younger renters express so much confidence in their ability to buy a home in coming years, because today’s renters by necessity are tomorrow’s buyers,” said Zillow Chief Economist Stan Humphries.
“Cynics might argue that these results represent no more than youthful exuberance, or perhaps some naiveté, but that’s missing the point. We need this generation to be confident and wanting to buy, regardless of the difficulties they face,” Humphries said.
And this generation does faces difficulties, Humphries explained, including saving for a down payment in the face of high rent and high student debt burdens, uncertain job prospects among younger workers and limited entry-level home inventory.
This is all a dramatic change from the picture of millenials as roadblocks to the housing recovery that usually fill news headlines.
Millennials witnessed the struggles their parents suffered from the housing crisis, and have piled on their own burden of student debt.