The millennials, those born between 1980 and the early 2000s, could conceivably increase the rate of homeownership once they earn enough to afford a home. But in the meantime, these 53 million may turn to micro-housing rental units, of which 90 percent are in high-density urban areas, less than 500 square feet, with an appeal to single professionals. By decreasing their rental expense, the thinking is they can save for a down payment on a home.
The flip side to that is the number of renters has increased by double digits since the recession, driving up rents, and with wages barely above the stagnation level, saving for a down payment becomes more difficult, as MHProNews understands. For millennials to remain in urban areas becomes even more expensive if they decide to buy a home. In addition, lenders are reluctant to lend on homes that are under 500 square feet.
Historically, first-time home buyers comprise 40 percent of homes sold monthly, but that number has hovered around 30 percent recently. As Dickerson says, “the housing industry will never recover from the Great Recession if millennials continue to struggle to find affordable homes or apartments.”
While noting “bold and innovative thinking is necessary by local political leaders,” manufactured housing stands out as an affordable housing option that could increase home ownership at a fraction of the cost of site-built homes. The average price of a new, three-bedroom site-built home in the United States runs around $270k, while a comparable new manufactured home can be had for $64k. ##
(Image credit: fotosearch–homeownership)
