The Changing Landscape of Homeownership: Millennials and Gen Z Settling in for the Long Haul
The concept of purchasing a starter home and quickly selling it for a larger "forever home" seems to be fading for millennial and Gen Z homebuyers. Data from the National Association of Realtors shows that nearly 40% of Americans between the ages of 25 and 44 who bought homes last year plan to stay in them for 16 years or more. The average mortgage rate for those who purchased homes last year was low, which may have contributed to their decision to stay put. However, affordable starter homes are becoming harder to find, with only about 11% of homes sold in the first quarter of 2023 priced below $300,000. Despite the challenges, more millennials are becoming homeowners, and experts suggest exploring low down payment options to enter the market.