research found millennials with a bachelor's degree or higher represented the biggest group going back home.
Chicago, IL (PRWEB) February 23, 2015
With millennials paying back student loans,The Federal Savings Bank knows that they are likely to move back home to save up money and pay down high levels of debt. Although the lack of millennials in the housing market could be a sign of trouble for the sector, the National Association of Home Builders said on February 10th that the number of millennials living with mom and dad could be a good indicator of pent-up housing demand.
The increase in boomerang millennials - or those who pack their bags to live with their parents - show that these younger consumers could mean housing growth in the future. The NAHB said of the 90 percent of those who were born between 1980 and 1984 and left their parents' residences before the age of 27, more than half moved back home. The study suggests a link between millennials who had student debt and those who returned to their parents' houses. The research found millennials with a bachelor's degree or higher represented the biggest group going back home.
David Crowe, NAHB chief economist, said knowing information about consumers who return home could help builders understand pent-up demand.
"The data may indicate that while this age group is delaying what we think of as typical milestones, the combination of resources and education and what we have found about their preferences suggest growing housing demand in the years ahead," Crowe said in a statement.
As more millennials enter the housing market, real estate agents should determine how to best communicate with this age group, as reported by Bloomberg on February 20th.
Kyle Reyes, president of Silent Partner Marketing, said that there is a huge disconnect between real estate agents and their younger clientele because of how millennials approach home buying, according to Bloomberg. Despite the difficulty in talking with millennials, real estate agents should be sure to answer their questions quickly.
Millennials or other first-time home buyers could contact the Federal Savings Bank, a veteran owned bank, to learn more about mortgages.