The Biggest Generation
Recent data has shown that renting can cost more than owning a home, and with millennials gearing up to the responsibility of owning a home, home builders are shifting their strategy in order to cater to this age group. In the first quarter of 2017, more new US households preferred to purchase a home than rent in the first quarter of 2017– the first time the scale has tipped that way in more than a decade, according to a Wall Street Journal report.
Data from the Census Bureau indicated that 854,000 new-owner households were formed in the first quarter of the year, handily beating the 365,000 new-renter households formed in the same quarter. “They’re crawling out of their parents’ basements, they’re forming households and they’re looking to buy,” Doug Bauer, chief executive of home builder Tri Pointe Group told the Journal.
"Zelman & Associates, a housing-research firm, said that in Q1 2017, 31% of homes built by major builders were reportedly in the starter-home range (2,250 square feet). Millennials recently eclipsed baby boomers as the nation’s largest generation, so it is imperative that they have quality long-term housing options,” Steve Hovland, director of research for HomeUnion, told the Journal.
Source: The Wall Street Journal