September 8, 2018 rummy 0Comment

Research shows that a great number of prospective home buyers came from a family who owned a home as compared to those who grew up in a family who rents. This is great news as most millennials are raised by baby boomers which we all know to be a generation of homeowners.

According to an analysis of millennial homeowners, the homeownership rate of those whose parents rent their homes is 14.4%, while the rate amongst millennials whose parents are homeowners is 31.7%!

“A young adult’s odds of homeownership are highly correlated with their parent’s homeownership.
Without controlling for such factors as age, income, education, marital status, and race or ethnicity, there is a 17 percentage-point gap between the homeownership rate for young adults whose parents are renters and young adults whose parents are homeowners.”

The study also revealed that as a parent’s net worth increases, so does the likelihood that their child will own a home. These two findings are not surprising as we know from the Survey of Consumer Finances that a homeowner’s net worth is 44x greater than that of a renter.

Below is a breakdown of the relationship between a parent’s wealth and a millennia’s likelihood to own a home.

Even though millennials took longer than many of the generations before them to start home searches of their own, the data shows that they will not be waiting much longer!

Reference: https://bit.ly/2N1uhQk

 

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Rummy Dhanoa - Broker with New York Real Estate Experts