Are Young Adults Buying Homes Again? Posted on March 5, 2013 by socialmedia by A post from our friends at Keeping Current Matters. Sales of residential properties are back to the highs experienced at the expiration of the Home Buyers Tax Credit in April 2010. One of the reasons for this surge in purchasing is that young adults may again be entering the market. Over the last few years, many young adults stayed on the sidelines (some in their parents’ homes) while waiting for the overall economy and the housing market to stabilize. This group represents a pent-up purchasing demand which is now coming to market. Last summer, the Joint Center for Housing Studies at Harvard University released astudy which addressed this demographic: “Surveys consistently find that the overwhelming majority of young adults plan to own a home in the future, but many would-be buyers have stayed on the sidelines waiting for the job outlook to improve and house prices to stop falling. But as markets tighten, these fence-sitters may begin to take advantage of today’s lower home prices and unusually low mortgage rates.” It seems this is beginning to take place. The Census Bureau recently reported that annual household formations are almost back to boom time numbers: Boom Years: 1,250,000 annual formations 2008-2011: 650,000 annual formations 2012: 1,150,000 annual formations Freddie Mac is projecting 1,250,000 new household formations in 2013. These new households will be divided between purchases and rentals. However, we must realize this group believes strongly in homeownership. Here are three examples: 43% of young adults between the ages of 18-34 years old already own a home. 72% of young adults between the ages of 18-34 years old see homeownership as part of their personal American Dream. 93% of young adults between the ages of 18-34 years old, who currently rent, plan to buy a home. It will be interesting to follow this trend as prices rise and interest rates inch upward. Tags: Gen X, Gen X Buyers, Gen Y, Gen Y Buyers, Generation X, Generation Y, KCM, keeping current matters, new households, young adults Categories: Home Buying, Real Estate News Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ Home Property Search Map Search About Me My Listings My Recently Sold My Reviews Videos Contact Me Reset Password Enter the email address for your account and we will email you instructions on how to reset your password Email* Reset My Password × Sign In Email* Password* Sign In Reset Password New to myShorewest? Create an Account First Name* Last Name* Email* Passwords must be at least 8 characters Password* Repeat Password* Create Account × Forgot Your Password? 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