Millennials — the rising generation of young adults entering the work place and starting families — have not been the sort of reliable indicators of housing demand that helps the supply strategy plans of home builders and developers. Millennials’ delaying home ownership has been cited as a threat to the housing recovery and the reason for sluggish building growth. But Builder magazine finds that some of the hottest markets for first-time buyers are those that have had an increase in new homes sold for less than $200,000.
Young adults have struggled to break into home ownership in recent years, strapped with high student-loan debt and unable to meet tighter lending standards. The number of American adults under the age of 35 owning a home is down by 6% from 2007, according to the Census Bureau.
More construction in the lower-end housing market may be the key to attracting more Millennial home buyers. In some areas of the country, builders are ramping up supply of homes costing $200,000 or less, often in college towns and areas that have improving job markets.
The Durham-Chapel Hill market placed 5th on the list of cities having the largest increases in the percentage of new homes sold under $200,000 in the fourth quarter of 2013 and the first quarter of 2014.
Whether you’re thinking of selling your existing home or dreaming of that first-time purchase, the knowledgeable real estate professionals at http://www.BHHSCarolinas.com stand ready to help you with all your needs.
Source: Builder Magazine – June 2, 2014