The National Association of Realtors (NAR) reports homeownership for the under 35 year-old crowd has fallen from 43 percent in 2005 to 36 percent today, according to nationaljournal. Even with very affordable interest rates, the Millennial generation in many cases is saddled with student debt, putting a damper on their credit scores, and with incomes fairly stagnant, cannot maintain house payments.

Ken Fears says the biggest hurdle for a home buyer is the down payment, and while some states have programs that reduce the down payment to as little as three percent for first-time buyers, the inventory of homes in some markets remains low, resulting in lenders choosing those who already have the 15 or 20 percent down. Areas like California have quickly rising prices, which can put home-buying even more out of reach for millennials.

Stan Humphries, Chief Economist at Zillow, says, “Younger buyers have expressed a desire to enter the market, and as they get married, get better jobs and begin to settle down and have children, they will.” Humphries adds this may push the first-time homebuyers from 31 to between 32 and 34, setting a new normal.

The very fact that  millennials are ready to be different and need affordability, could be an opening for savvy manufactured home marketers and retailers.

 

AsMHProNews  reported Sept. 22, 2014, 27 percent of millennials who purchased a home last year said they received a cash gift from relatives, up from 24 percent in 2012. In addition, 54 percent of first-time buyers in 2013 say their home-buying was delayed because of student debt.  ##

(Image credit: fotosearch–homeownership still a dream for many)

(Submitted by Matthew J. Silver to  Daily BusinessNews–MHProNews)