Many of the budding millennial housing sector - comprised of potential home buyers born during and after the 1980s, or Gen Y - aren't able to participate in the revitalized real estate growth that has spanned the United States over the past year.
A large component of millennials want to buy homes, but various factors are stopping them, according to USA Today. For example, Mila and Jon Gates placed on offer on a home, but turned away after they realized one of them needed to take a second job just to cover monthly mortgage payments. The reason for the high amount was because they had to offer a price well above the listing, due to the competitive market, cash bidders, and the increased loan debt plaguing the generation.
In addition, USA Today compiled property data from the U.S Census Bureau about the percentages of home owners that are between the ages of 25- to 34-years old, a prime range for millennials. Nearly every single metro area reported a decrease in the change between 2006 and 2011, with Little Rock, Arkansas actually gaining these buyers, at a rate of 1.5 percent. That is nearly an 18-point shift from the lowest drops.
It isn't all bad for the housing market and millennials, and nationally the crisis is over, with home prices and housing sales rising recently, according to USA Today. Mortgage rates are fluctuating, but still historically low, and mid-July marked the first time in weeks the numbers went down.
A plus side for Gen Y
Millennials are fueling demand, even if the ability to close on a home still dodges some. Many multi-family and rental properties are seeing an increase in construction, according to the Urban Land Institute, and regions such as San Francisco, Boston and Denver are teeming with this cohort, as well as other tech-oriented cities across the country.
Real estate records showed that millennials desire smaller homes and rentals, generally a two bedroom, two bathroom that has the option of being shared with other renters, the magazine reported. Buyers in this age bracket are typically career-oriented, focusing on the job rather than family and marriage - factors which change their real estate preferences.
Most millennials are first time buyers, important to stimulate the market, USA Today noted. Getting these buyers back into real estate is crucial.
"Giving people the opportunity to buy a home is a way to provide them a vehicle of accumulating wealth," Chris Herbert, a research director at Harvard University, told the news source. "Making sure this next generation has this opportunity will be important for their well-being."