After a three-year high of 36% during the last quarter of 2017, Millennial homeownership has dropped to 35.3% in Q1 of 2018.
Homeownership across the country is slowly reverting back to its record low two years ago and the younger generation of homebuyers are behind that. In the previous quarters, the Millennial generation has been driving the homeownership rate in the country.
Trulia’s senior economist, Cheryl Young, says that “MIllennials make up the largest share of those seeking starter homes, a portion of the market that saw inventory plummet 14.2 percent and prices leap nearly 10 percent year-over-year in Q1 2017.”
Housing affordability remains to be the biggest culprit and the availability of homes for sale is not helping in any way. Add to these factors the rising mortgage interest rates which reached its highest level in four years.
The National Association of Realtors reports that “the supply of starter homes is so lean that March sales were down in that sector over 21% compared with a year ago.”